Question

What is the most plausible value for the correlation between spending on tobacco and spending on alcohol? 0.99 − 0.50 −0.50 0.80 0.08

Answer 1

Answer:

Option c) 0.80        

Step-by-step explanation:

We have to approximate the most possible correlation between spending on tobacco and spending on alcohol.

• Correlation is a technique that help us to find or define a relationship between two variables.
• A positive correlation means that an increase in one quantity leads to an increase in another quantity
• A negative correlation means with increase in one quantity the other quantity decreases.
• Values between 0 and 0.3 tells about a weak positive linear relationship, values between 0.3 and 0.7 shows a moderate positive correlation and a correlation of 0.7 and 1.0 states a strong positive linear relationship.
• Values between 0 and -0.3 tells about a weak negative linear relationship, values between -0.3 and -0.7 shows a moderate negative correlation and a correlation value of of -0.7 and -1.0 states a strong negative linear relationship.

a) 0.99

This shows almost a perfect straight line relationship between spending on tobacco and spending on alcohol. Thus, this cannot be the right correlation as the relationship between spending on tobacco and spending on alcohol is not so strong.

b)-0.50

This shows a negative relation between spending on tobacco and spending on alcohol which cannot be true as they share a positive relation.

c) 0.80

This correlation shows a strong positive correlation between spending on tobacco and spending on alcohol which is correct because the relationship between spending on tobacco and spending on alcohol is positive

d)0.08

This correlation shows a very weak positive correlation between spending on tobacco and spending on alcohol which cannot be true.