For families who live in apartments the correlation between the family's income
And the amount of rent they pay is r = 0.60. Which is true?
I. In general, families with higher incomes pay more in rent.
II. On average, families spend 60% of their income on rent.
III. The regression line passes through 60% of the (income$, rent$) data
Points.
A) I only
B) II only
C) I and II
D) I and III
E) I, II and III

Question

Quizplus · Accepted Answer

A correlation of r = 0.60 indicates a positive relationship, meaning that generally, as income increases, rent also increases. However, it does not imply that families spend 60% of their income on rent or that the regression line passes through 60% of the data points.

For Families Who Live in Apartments the Correlation Between the Family's