5.2 Where’s Your Variation?
What can we infer from the above relationship?
Conclude
- Negative statistical relationship between avocado prices and quantity sold
- Nothing else.
Cannot conclude
- Increase in avocado price caused lower sales
- How supply and demand interact to influence price
What research questions might we produce from this chart?
- What is effect of price increase on avocados demanded?
- How does number of avocados brought to market influence price charged?
- Effect of price on number of avocados brought to market?
- Temporal effect of quantity demanded from prior week on subsequent week
