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. Suppose a random sample of employees gave the following information. $$\begin{array} { c | c c c c c }
\hline x & 2 & 8 & 14 & 32 & 73 \
\hline y & 50 & 45 & 35 & 28 & 16 \
\hline
\end{array}$$ As x increases, does the value of r imply that y should tend to increase, decrease, or remain the same? Explain.
A)Since r is positive, as x increases, y increases.
B)Since r is negative, as x increases, y increases.
C)Since r is positive, as x increases, y remains the same.
D)Since r is negative, as x increases, y decreases.
E)Since r is zero, as x increases, y decreases.

Question

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. Suppose a random sample of employees gave the following information. $$\begin{array} { c | c c c c c } 
\hline x & 2 & 8 & 14 & 32 & 73 \
\hline y & 50 & 45 & 35 & 28 & 16 \
\hline
\end{array}$$ As x increases, does the value of r imply that y should tend to increase, decrease, or remain the same? Explain.
A)Since r is positive, as x increases, y increases.
B)Since r is negative, as x increases, y increases.
C)Since r is positive, as x increases, y remains the same.
D)Since r is negative, as x increases, y decreases.
E)Since r is zero, as x increases, y decreases.

Quizplus · Accepted Answer

The data shows that as x (the average number of employees) increases, y (the average administrative cost as a percentage of claims) decreases. This indicates a negative correlation, meaning as one variable increases, the other decreases.

Let X Be the Average Number of Employees in a Group