Coffee is a leading export from several developing countries. When coffee prices

Question

Coffee is a leading export from several developing countries. When coffee prices are high, farmers often clear forest to plant more coffee trees. Data on prices paid to coffee growers in Indonesia and the rate of deforestation in a national park that lies in a coffee producing region was collected for ten years. The correlation was found to be 0.648 and the regression equation was y^^=36.99x+80.29 What proportion of the variation in the rate of deforestation can be explained by it's linear relationship with coffee prices? Percentage Report answer as a percentage accurate to one decimal place. Submit

Explanation / Answer

The correlation coefficient, r=0.648, therefore, coefficient of variation, R^2 is 0.648^2=0.4199.

Therefore, 42.0% variation in rate of deforestation is explained by coffee prices.

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