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 0.961 and the regression equation was j)-90.27x + 36.63 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

the correlation is given as 0.961 thus coefficient of determination is r^2=(0.961)^2=0.9235

thus 92.35% variation in the rate of deforestation can be explained by coffee prices

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