Question

Data seems to indicate that there is a negative correlation between years of education and unemployment rates. Which of the following describes what this means? a. As education increases unemployment increases. b. As education increases unemployment decreases. c. As education decreases unemployment decreases. d. None of the above.

Answer 1

Option: b is the correct answer.

b. As education increases ; unemployment decreases.

Explanation:

Negative correlation is one in which the change in one variable leads to the inverse effect in the other variable.

i.e. if one variable increases than the other variable decreases and if one variable decreases than the other increases.

Here the statement that best describes that there is a negative correlation between years of education and unemployment rates is:

b. As education increases unemployment decreases.