Let x be the average number of employees in a group health insurance plan, and l
ID: 3228002 • Letter: L
Question
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. (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? low and positive moderate and negative moderate and positive low and negative strong and negative strong and positive (c) Use a calculator to verify that sigma x = 127, sigma x^2 = 6207, sigma y = 151, sigma y^2 = 4801, and sigma xy = 3047 Computer. 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 increase 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 decrease as x increases. Given our value of r, y should tend to remain constant as x increases.Explanation / Answer
The statistical software output for correlation coefficient is:
Correlation between x and y is:
-0.9305138
Hence,
r = -0.931
Option C is correct.
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