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 72 y 40 35 30 26 21 (b) Would you say the correlation is low, moderate, or strong? positive or negative? 1)strong and positive 2)moderate and positive 3)moderate and negative 4)low and negative 5)strong and negative 6)low and positive (c) Use a calculator to verify that Σx = 133, Σx2 = 6763, Σy = 152, Σy2 = 4842, and Σxy = 3263. Compute r. (Round your answer to three decimal places.) r = _________? As x increases, does the value of r imply that y should tend to increase or decrease? Explain. 1)Given our value of r, y should tend to remain constant as x increases. 2)Given our value of r, y should tend to increase as x increases. 3)Given our value of r, y should tend to decrease as x increases. 4)Given our value of r, we cannot draw any conclusions for the behavior of y as x increases

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Answered: 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…

6th Edition

ISBN: 9781119256830

Author: Amos Gilat

Publisher: John Wiley & Sons Inc

Question

100%

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	72
y	40	35	30	26	21

(b) Would you say the correlation is low, moderate, or strong? positive or negative?

1)strong and positive

2)moderate and positive

3)moderate and negative

4)low and negative

5)strong and negative

6)low and positive

Compute r. (Round your answer to three decimal places.)
r = _________?

As x increases, does the value of r imply that y should tend to increase or decrease? Explain.

1)Given our value of r, y should tend to remain constant as x increases.

2)Given our value of r, y should tend to increase as x increases.

3)Given our value of r, y should tend to decrease as x increases.

4)Given our value of r, we cannot draw any conclusions for the behavior of y as x increases.

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