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The following is a scatter plot for profits versus sales (in tens thousands of d

ID: 3222952 • Letter: T

Question

The following is a scatter plot for profits versus sales (in tens thousands of dollars) for a random sample of 11 large companies. The correlation between sales and profits is 0.949. Which of the following statements is FALSE? There is a positive association between x and y. If we removed the outlier, r would not change much. If we removed the outlier and recreated the scatter plot, we would have the same basic impression of the relationship between sales and profit. None of the answer options is correct. A researcher measures the correlation between two variables. This correlation tells us: whether there is a relation between two variables. whether a scatter plot shows an interesting pattern. whether a cause-and-effect relation exists between two variables. the strength and direction of a linear association between two variables.

Explanation / Answer

The answers are

12. If we remove the outlier and recreated the scatterplot, we would have the same basic impression of the relationship between sales and profit.

13. the strength and direction of a linear association between two variables.