Which of the following relationships would have a negative correlation coefficient?
A)Supply and demand
B)Amount of a bill at a restaurant and the amount of the tip
C)Cost of a car and the amount of tax to be paid
D)The square footage of a home and the price of the home

Question

Quizplus · Accepted Answer

A negative correlation coefficient indicates that as one variable increases, the other decreases. In the context of supply and demand, generally, as supply increases, demand decreases, assuming all other factors are constant. This relationship is typically inverse, hence a negative correlation. The other options (B, C, D) suggest positive relationships where both variables move in the same direction (both increase or decrease together).

Which of the Following Relationships Would Have a Negative Correlation