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. The following data is based on a random sample: x 5 7 15 25 35 y 40 35 30 20 25 a. Plot a scatter diagram of the above data. b. Estimate the sample correlation coefficient r as positive, zero, or negative. c. Interpret your results from parts a. and b.

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. The following data is based on a random sample: x 5 7 15 25 35 y 40 35 30 20 25 a. Plot a scatter diagram of the above data. b. Estimate the sample correlation coefficient r as positive, zero, or negative. c. Interpret your results from parts a. and b.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.4: Distributions Of Data

Problem 19PFA

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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. The following data is based on a random
sample:
x 5 7 15 25 35
y 40 35 30 20 25
a. Plot a scatter diagram of the above data.
b. Estimate the sample correlation coefficient r as positive, zero, or negative.
c. Interpret your results from parts a. and b.

Definition Definition Statistical measure used to assess the strength and direction of relationships between two variables. Correlation coefficients range between -1 and 1. A coefficient value of 0 indicates that there is no relationship between the variables, whereas a -1 or 1 indicates that there is a perfect negative or positive correlation.

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