CORN AND HOG CORRELATION'S 
As an example take the case of corn crop and price. 
55 
Reg P . c = r P 
0c 
= -0.80X 
8.3 cents per bushel 
260,000,000 bushels 
= -2.55 cents per 100,000,000 bushels 
This means that every fluctuation of 100,000,000 bushels in the 
estimated corn crop during the period from 1871 to 1913 meant an 
&7& A&7& /&&& /<3<3S /&90 /<5\9JT s&<?& /J?£& A&/& /£>/£~ 
Fig. 29.-The actual western summer pack and the expected value on the basis of three preceding ™rn 
wipes The deviations from the corn-price trend in the successive years are multiplied bj -.36, -.25, 
?Sd - 61 resnecSvelv and added The result multiplied by the ratio of the standard deviation of 
wester* summer to com ^e (117?) is the expected deviation of the summer pack from its trend in the 
following year. Summer pack is determined 57 per cent by the three preceding corn prices 
average fluctuation in the opposite direction of about 2.55 cents in the 
Pr sfmHa^ or decrease of 100,000,000 bushels in the 
corn crop during the same period meant in the average an increase or 
decrease of about 275,000 hogs in the wholesale western hog pack ol 
the next summer. . . , 
The winter hog pack could have been predicted rather closely Irom 
the summer live weight a year and a half before, on the basis of the 
correlation of +0.78 between them. Every departure of 1 pound 
from the trend of summer live weight indicated in general a corre- 
sponding increase or decrease of 130,000 hogs in the second following 
winter pack (fig. 30). 
