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 and III only
B) I, II, and III
C) I only
D) I and II only
E) II only

Question

Quizplus · Accepted Answer

A correlation of r = 0.60 indicates a positive relationship, meaning that as income increases, rent tends to increase as well. 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