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An economic development researcher wants to understand the relationship between

ID: 3207159 • Letter: A

Question

An economic development researcher wants to understand the relationship between the average monthly expenditure on utilities for households in a particular middle-class neighborhood and each of the following household variables: family size, approximate location of the household within the neighborhood, and indication of whether those surveyed owned or rented their home, gross annual income of the first household wage earner, gross annual income of the second household wage earner (if applicable), size of the monthly home mortgage or rent payment, and the total indebtedness (excluding the value of a home mortgage) of the household. The correlation for each pairing of variables are shown in the table below. Table of correlations Which of the variables have the strongest linear relationship with the variable "Location"? First Income. Family size. Debt. Second income.

Explanation / Answer

first income has highest absolute value of correlation with location, hence it has the strongest linear relationship

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