Question 2.26

2.26 Brand names and generic products

  1. If a store always prices its generic “store brand” products at exactly 90% of the brand name products’ prices, what would be the correlation between these two prices? (Hint: Draw a scatterplot for several prices.)
  2. If the store always prices its generic products $1 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?