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# 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

#### 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.

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