# You run a snack shop at the beach and you find a perfect positive correlation

You run a snack shop at the beach and you find a perfect positive correlation

Question 22 (2 points)

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You run a snack shop at the beach and you find a perfect positive correlation between the weather (TEMPERATURE) and the revenue you receive from sales of drinks (REVBEV). So based on the weather forecast for the upcoming week you can predict how much revenue you’ll get. Does this mean that you can also look at revenues from the past week and know (predict) what were the temperatures?

Question 22 options:

Yes, if you convert TEMPERATURE   and REVBEV to their z-score values, then you can use the same simple   regression equation both ways.

None of these

All of these

Yes, but only if the values of   TEMPERATURE and REVBEV in your regression equation use values within the   range that you calculated the correlation from

Yes, if you have two separate   simple regression models to predict TEMPERATURE from REVBEV, and to predict   REVBEV from TEMPERATURE

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