1.Students were asked to investigate some economic relationshipsassociated with

Question

1.Students were asked to investigate some economic relationshipsassociated with GDP

(gross domestic product) and some assorted variables (such as lifeexpentancy, literacy,

infant mortality). Consider the following statementsinvolving correlation. Study each

statement. Can you spot any statistical errors? Explain  

a)``My correlation of -.77 shows no association between GDP andinfant mortality”

b)``There is a correlation of .44 between GDP andcontinent”

c)``There is a very strong correlation of 1.22 between lifeexpectancy and GDP”

d)``The correlation between literacy rate and GDP is .83. This showsif a country wishes to

increase its standard of living it should invest heavily ineducation’’.

Explanation / Answer

d) ``Thecorrelation between literacy rate and GDP is .83. This shows if acountry wishes to

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