The correlation between Fuel Efficiency measured by miles pe

The correlation between Fuel Efficiency( measured by miles per gallon) and price of 150 cars at a large dealership is r= -0.34. Explain whether or not each of these possible conclusions is justified:

1) the more you pay the lower the fuel efficiency of your car will be

2)the form of relationship between fuel efficiency and price is moderately straight

3) there are several outliers that explain the low correlation

4) if we measure fuel efficiency in kilometers per litre instead of mile per gallon , the correlation will increase?

please include any formulas you may have used. This will helo me better undrstand. Thank you.

Solution

The correlation between Fuel Efficiency ( measured by miles per gallon) and price of 150 cars at a large dealership is r= -0.34.

1) the more you pay the lower the fuel efficiency of your car will be