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) II only
D) I only
E) I and 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, supporting statement I. Statements II and III are incorrect interpretations of correlation.

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