Coffee is a leading export from several developing countries

Coffee is a leading export from several developing countries. When coffee prices are high, farmers often clear forest to plant more coffee trees. Here are five years\' data on prices paid to coffee growers in Indonesia

Price ($US per pound)

0.26

0.35

0.58

0.55

0.79

Forest lost (percent)

0.24

1.64

1.62

1.54

3.01

What is the correlation (± 0.01) between the price of coffee and the forest loss
in US dollars?     

What is the correlation (± 0.01) between the price of coffee and the forest loss
in Russian rubles, if the exchange rate is 26 Russian rubles per US dollar ?     

Solution

r = 0.8926

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If we exchange to Russian rubles data will be

correlation between (x,26y)

= coor (x,y)

=0.8926