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Blababa [14]
3 years ago
11

There is a positive correlation between drinking coconut milk and eating potato chips. What does this correlation mean? What are

three possible underlying relationships between the variables?
Mathematics
1 answer:
faltersainse [42]3 years ago
3 0

Answer with explanation:

It is given that, there is positive correlation between drinking coconut milk and eating potato chips.

→Correlation coefficient is denoted by r.

→The value of r lies between , -1 and 1 which is represented as , -1 ≤r≤1.

→Correlation that is relation between two variables is said to be strongly positive, if r is equal to 1, and it is said to be strongly weak, if it is equal to -1 , and said to have no association if r=0.

→ The meaning of positive correlation is that value of r, is greater than >0.8 but less than 1.

The two variables which are positively correlated ,can have following relationship.

1. With increase in one other increases.

2.With decrease in one other decreases.

3. Slope will be a linear that is a straight line not passing through origin.

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An insurance policy on an electrical device pays a benefit of 4000 if the device fails during the first year. The amount of the
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Answer:

Expected benefit under this policy = $ 2694

Step-by-step explanation:

Given - An insurance policy on an electrical device pays a benefit of

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            If the device has not failed by the beginning of any given year, the

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To find - What is the expected benefit under this policy ?

Proof -

Let us suppose that,

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Given that, the probability of failure during that year is 0.4

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Now,

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If the device fail in third year, then

Probability = 0.6×0.6×0.4 = 0.6² × 0.4

Going on like this , we get

If the device is failed in n year, then

Probability = 0.6ⁿ⁻¹ × 0.4

Now,

The probability distribution is-

Benefit , x       4000       3000             2000            1000              0

P(x)                 0.4         0.6×0.4         0.6² × 0.4     0.6³ × 0.4     1 - 0.8704

                      (0.4)       (0.24)            (0.144)         (0.0864)       (0.1296)

At last year, the probability = 1 - (0.4+ 0.24+ 0.144+ 0.0864) = 1 - 0.8704

Now,

We know that,

Expected value ,

E(x) = ∑x p(x)

       = 4000(0.4) + 3000(0.24) + 2000(0.144) + 1000(0.0864) + 0(0.1296)

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∴ we get

Expected benefit under this policy = $ 2694

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