Multiple choice The correlation between AgeAge and IncomeInc

Multiple choice

The correlation between

AgeAge

and

IncomeIncome

as measured on

8080

people is

requals=0.850.85.

Explain whether or not each of the following possible conclusions is justified.

Solution

Since the explanation is given itself in the options, I do not feel the need to providing any further explanation, but if you dont get any part please ask in comments.

a).

D. Yes . because the correlation coefficient between age and income is positive

b)

D. No because the absolute value of correlation coefficient is not equal to 1.

c).

C. No because the correlation coefficient is close to 1.

d).

Yes, because changing the units of age changes the correlation coefficient