Coffee is a leading export from several developing countries. When coffee prices
ID: 3317707 • Letter: C
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 0.549 and the regression equation was y = 61.83x + 34.51 What proportion of the variation in the rate of deforestation can be explained by it's linear relationship with coffee prices? Report answer as a percentage accurate to one decimal place.Explanation / Answer
Solution:- The proportion of variation in the rate of deforestation can be explained by its linear relationship with coffee prices is 30.14%.
r = 0.549
r2 = (0.549)2
r2 = 0.3014
The proportion of variation in the rate of deforestation can be explained by its linear relationship with coffee prices is 30.14%.