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 36 71 y 40 35 30 26 20 (a) Make a scatter diagram of the data and visualize the line you think best fits the data. (b) Would you say the correlation is low, moderate, or strong? positive or negative? moderate and positive low and positive strong and negative low and negative moderate and negative strong and positive (c) Use a calculator to verify that Σx = 132, Σx2 = 6620, Σy = 151, Σy2 = 4801, and Σxy = 3171. 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.

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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 36 71
y 40 35 30 26 20

 

(a) Make a scatter diagram of the data and visualize the line you think best fits the data.

 

(b)
Would you say the correlation is low, moderate, or strong? positive or negative?
moderate and positive
low and positive    
strong and negative
low and negative
moderate and negative
strong and positive
 
(c) Use a calculator to verify that Σx = 132, Σx2 = 6620, Σy = 151, Σy2 = 4801, and Σxy = 3171. 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, we cannot draw any conclusions for the behavior of y as x increases.
 
Given our value of ry should tend to decrease as x increases.    
 
Given our value of ry should tend to remain constant as x increases.
 
Given our value of ry should tend to increase as x increases.
 
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