Let x be the average number of employees in a group health insurance plan, and let y be the average administrative cost as a percentage of claims. x 3 7 15 37 70 y 40 35 30 26 17 (b) Would you say the correlation is low, moderate, or strong? positive or negative? low and positive moderate and negative strong and negative low and negative strong and positive moderate and positive (c) Use a calculator to verify that Σx = 132, Σx2 = 6552, Σy = 148, Σy2 = 4690, and Σxy = 2967. Compute r. (Round your answer to four decimal places.) r = As x increases, does the value of r imply that y should tend to increase or decrease? Explain. Given our value of r, y should tend to remain constant as x increases. Given our value of r, we cannot draw any conclusions for the behavior of y as x increases. Given our value of r, y should tend to increase as x increases. Given our value of r, y should tend to decrease as x increases.
Let x be the average number of employees in a group health insurance plan, and let y be the average administrative cost as a percentage of claims. x 3 7 15 37 70 y 40 35 30 26 17 (b) Would you say the correlation is low, moderate, or strong? positive or negative? low and positive moderate and negative strong and negative low and negative strong and positive moderate and positive (c) Use a calculator to verify that Σx = 132, Σx2 = 6552, Σy = 148, Σy2 = 4690, and Σxy = 2967. Compute r. (Round your answer to four decimal places.) r = As x increases, does the value of r imply that y should tend to increase or decrease? Explain. Given our value of r, y should tend to remain constant as x increases. Given our value of r, we cannot draw any conclusions for the behavior of y as x increases. Given our value of r, y should tend to increase as x increases. Given our value of r, y should tend to decrease as x increases.
Let x be the average number of employees in a group health insurance plan, and let y be the average administrative cost as a percentage of claims. x 3 7 15 37 70 y 40 35 30 26 17 (b) Would you say the correlation is low, moderate, or strong? positive or negative? low and positive moderate and negative strong and negative low and negative strong and positive moderate and positive (c) Use a calculator to verify that Σx = 132, Σx2 = 6552, Σy = 148, Σy2 = 4690, and Σxy = 2967. Compute r. (Round your answer to four decimal places.) r = As x increases, does the value of r imply that y should tend to increase or decrease? Explain. Given our value of r, y should tend to remain constant as x increases. Given our value of r, we cannot draw any conclusions for the behavior of y as x increases. Given our value of r, y should tend to increase as x increases. Given our value of r, y should tend to decrease as x increases.
Let x be the average number of employees in a group health insurance plan, and let y be the average administrative cost as a percentage of claims.
x
3
7
15
37
70
y
40
35
30
26
17
(b)
Would you say the correlation is low, moderate, or strong? positive or negative?
low and positive
moderate and negative
strong and negative
low and negative
strong and positive
moderate and positive
(c)
Use a calculator to verify that Σx = 132, Σx2 = 6552, Σy = 148, Σy2 = 4690, and Σxy = 2967. Compute r. (Round your answer to four decimal places.)
r =
As x increases, does the value of r imply that y should tend to increase or decrease? Explain.
Given our value of r, y should tend to remain constant as x increases.
Given our value of r, we cannot draw any conclusions for the behavior of y as x increases.
Given our value of r, y should tend to increase as x increases.
Given our value of r, y should tend to decrease as x increases.
Transcribed Image Text:Let x be the average number of employees in a group health insurance plan, and let y be the average administrative cost as a
percentage of claims.
O
as
y (average cost
percentage)
r=
(a) Make a scatter diagram of the data and visualize the line you think best fits the data.
40
40
x
y
USE SALT
y (average cost
as
percentage)
35
30
25
20
3
40
30
40
35 •
25
20
15 37 70
26 17
7
35 30
10 20 30 40 50 60
x (average number
of employees)
10
20 30 40 50
x (average number
of employees)
70
60 70
DO
y (average cost
as percentage)
y (average cost
as percentage)
35
30
25
20
40
35
30
25
20
10
10
(b) Would you say the correlation is low, moderate, or strong? positive or negative?
Olow and positive
O moderate and negative
O strong and negative
Olow and negative
Ostrong and positive
Omoderate and positive.
20 30 40
50
x (average number
of employees)
20
30 40 50
x (average number
of employees)
60 70
As x increases, does the value of r imply that y should tend to increase or decrease? Explain.
O Given our value of r, y should tend to remain constant as x increases.
Given our value of r, we cannot draw any conclusions for the behavior of y as x increases.
O Given our value of r, y should tend to increase as x increases.
Given our value of r, y should tend to decrease as x increases.
60 70
(c) Use a calculator to verify that Ex = 132, Ex2 = 6552, Ey = 148, Ey2 = 4690, and Exy = 2967. Computer. (Round your
answer to four decimal places.)
@
Definition Definition Relationship between two independent variables. A correlation tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
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