Question

Select the correct answer. What is the approximate value of the correlation coefficient for the given graph? Graph shows line segment plotted on coordinate plane with number of years on horizontal axis and price of the car in thousand dollars on vertical axis. Line segment begins at (0, 35), goes through (1, 30), (2, 25), (3, 20), (4, 15), (5, 10), (6, 5). A. 1 B. 5 C. 3 D. -1

Answer 1

The approximate value of the correlation coefficient for the given graph is D. -1.

The correlation coefficient is a statistical measure that indicates the strength and direction of the linear relationship between two variables. A correlation coefficient of -1 indicates a perfect negative linear relationship, meaning that as the value of one variable increases, the value of the other variable decreases at a constant rate. In this case, as the number of years increases, the price of the car decreases, so the correlation coefficient is negative.