Applying the Concepts – Interpreting the Results of Correlations and Regressions

Big Sky Beef raises grass-fed beef cattle for sale to high-end grocery chains (like Whole Foods) and farm-to-table restaurants.  As sales have escalated over the past 2 years, the herd needs to be replenished more frequently to meet customer demands.  To create a simple but effective model, the team collected two pieces of data for each head of cattle sold at local auctions for the past 12 months  – (a) price of the cow (DV), and the cow\’s weight (IV). The following were the statistical results: Results of correlation analysis:  = .91   (3.45.01)  Results of simple regression analysis  = 200 + .15(= .83, = 15.46, .001)