2.52 Brand names and generic products.
(a) If a store always prices its generic “store brand” products at 80% of the brand name products’ prices, what would be the correlation between the prices of the brand name products and the store brand products? (Hint: Draw a scatterplot for several prices.)
(b) If the store always prices its generic products $2 less than the corresponding brand name products, then what would be the correlation between the prices of the brand name products and the store brand products?