# Correlation Between Gas and Passenger/Mile Ratio

The management of a regional bus line thought its cost of gas might be correlated with its passenger/mile ratio. Comment on the data and correlation matrix below.

Average Wholesale Cost of Gas Passenger/Mile Ratio

56.5 8.37

59.4 8.93

63.0 9.15

65.6 9.79

89.0 11.20

Correlation Coefficients/Probability > l R l

under HO: RHO = 0/N = 5

Year Price Mile

Year 1.00000 .87016 .95127

.0000 .0551 .0128

Price .87016 1.00000 .97309

.0551 .0000 .0053

Mile .95127 .97309 1.0000

.0128 .0053 .00000

https://brainmass.com/statistics/correlation/correlation-between-gas-passenger-mile-ratio-255555

#### Solution Preview

Looking at the data, we can see that both the cost of gas and passenger/mile ratio has been increasing from year to year, with the biggest increase occurring between year 4 and year 5.

The correlation matrix can be interpreted as follows:

First, we should ignore the diagonal values, since they represent each variable correlated with itself. Naturally the ...

#### Solution Summary

Looking at the data, we can see that both the cost of gas and passenger/mile ratio has been increasing from year to year, with the biggest increase occurring between year 4 and year 5.