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Information is obtained (this question will not show values) for businesses being sold: the price will...

Information is obtained (this question will not show values) for businesses being sold: the price will be in units of $ and area in units of square meters for business. Make a close guess as to the numerical value of the correlation coefficient.  

a. What is your reasonable value?

b. What would be your correlation coefficient units?

c. The coefficient of variation of the asking prices of the businesses is calculated. What would be the units of measure?

Math   Statistics-And-Probability   
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Answer #1

What is your reasonable value?

The price (in $)increases with area of business (sq m). There is a moderate to high correlation value.So consider a value of 0.75 to 0.9,since fluctuations and exceptions can occur sometimes. It can possibly be 0.99 also.

What would be your correlation coefficient units?

It is an unit free measure.

The coefficient of variation of the asking prices of the businesses is calculated. What would be the units of measure?

Coefficient of variation is an unit free measure. It is expressed in percentage most of the times.

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