Exercise

# Competition

Developing an effective pricing strategy for **Hoppiness** also requires considering the prices for **Bud**. The best way to do this is by price comparisons.

Therefore, you define a new variable `price.ratio`

indicating the ratio of `PRICE.HOP`

to `PRICE.BUD`

. You also take the `log()`

to ensure that the price ratio of **Hoppiness** to **Bud** has the same magnitude as the price ratio of **Bud** to **Hoppiness**. To better understand the new `price.ratio`

variable, you compare its values to the original `PRICE.HOP`

and `PRICE.BUD`

values.

Instructions

**100 XP**

- Calculate the ratio of
`PRICE.HOP`

to`PRICE.BUD`

. Assign the result to an object named`price.ratio`

. - Compare the
`price.ratio`

values to the original`PRICE.HOP`

and`PRICE.BUD`

values by using the functions`cbind()`

and`head()`

.