ACCA · Question 04 · Statistical Techniques
Section A
AgriYield Corp is analyzing the relationship between the amount of specialized fertilizer applied (x) and the resulting crop yield (y). The correlation coefficient (r) is calculated as +0.85. Which of the following statements is the most accurate interpretation of this result?
Answer options:
85% of the variation in crop yield is explained by the amount of fertilizer applied.
There is a strong positive linear relationship between fertilizer applied and crop yield.
Applying more fertilizer guarantees an 85% increase in crop yield.
There is a weak positive linear relationship, as the value is less than 1.0.
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