Question

You use a line of best fit for a set of data to make a prediction about and unknown value. The correlation coefficient for your data set is 0.109. How confident can you be that your predicted value will be reasonably close to the actual value?

A. I can't be confident at all; this is about as close to a random guess as you can get.
B. I can be a little confident; it might be close, or it might be way off.
C. I can be very confident; it will be close, but it probably won't be exact.
D. I can be certain that my prediction value will match the actual value exactly.

Answer 1

The answer is c. I can be very confident; it will be close, but it probably won’t be exact.

Answer 2

Correlation near 1 suggest a strong correlation and correlation near 0 suggest a weak correlation.

The value of given correlation coefficient is 0.109 which is closer to 0 as compared to 1. This means a weak correlation exists between the variables.

So, if a best fit is used to predict an unknown value, the result will be almost equivalent to making a guess because the correlation between the variables is very very weak.

So, option A is the correct answer