Palm oil. Global production and demand for palm oil has been increasing rapidly over the past couple of years.

Malaysia is currently the world’s second largest producer of palm oil. However, the average global monthly price of crude palm oil has dropped from 2018 to 2019 (https://

www.indexmundi.com/commodities/?commodity=palmoil&

months=60). The following scatterplot shows this trend.

a) Do you think there is a clear pattern? Describe the trend.

b) Is the association strong?

c) Is the correlation high? Explain.

d) Do you think a linear model is appropriate for these data? Explain.

Transcribed Image Text:

USD per Metric Ton 800 Monthly Prices of Crude Palm Oil 750 700 650 600 550 500 Sep-17 Dec-17 Apr-18 Jul-18 Oct-18 Feb-19 May-19 Aug-19 Dec-19 Mar-20 Month