Correlation Analysis of Watermelon Price among Markets in Yobe State, Nigeria

Abstract

The study was aimed at determining the price relationship among major watermelon markets in Yobe State, Nigeria. Three (3) Local Government Areas (lGAs) were purposively selected i.e. Nguru, Bade and Potiskum. The main objective of the study was to calculate the magnitude and direction of the prices of watermelon in the 3 LGAs, this will assist the marketers know which market to supply to for more earnings. The correlation coefficient and Johansen and Juselius co-integration test was employed as the analytical tools. The descriptive result revealed a mean age of 41years, 8 number of person per household, and 18 years of business experience. The Pearson Correlation matrix showed that the prices between Nguru and Bade was 0.097, Nguru and Potiskum -0.012. This expresses clearly that there was a very weak relationship. Also, the Johansson Co-integration test results revealed that the prices were not integrated. The paper concluded that the three watermelon markets were very independent of each other. It was recommended that watermelon fruits should be transformed into other forms to attract better prices and open up more markets for it.