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In the following scatter plot, the GrossIncome variable is plotted against the Revenue variable. What type of correlation does this plot suggest?

1) There is a weak positive correlation between both variables.
2) There is a strong positive correlation between both variables.
3) There is a weak negative correlation between both variables.
4) There is a strong negative correlation between both variables.

1 Answer

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Answer:

Without a provided scatter plot, we cannot determine the specific type of correlation between Gross Income and Revenue. Correlation is assessed by the direction and tightness of the data points in a scatter plot, indicating positive, negative, or no correlation.

Step-by-step explanation:

In order to determine the type of correlation between Gross Income and Revenue from a scatter plot, we need to observe how the data points are arranged. If the data points are closely packed in an upward trend from left to right, this would suggest a strong positive correlation. Conversely, if they tend to slope downward, it would suggest a negative correlation. A tight cluster of points along a line indicates a strong correlation, whereas a more diffuse spread of points indicates a weaker correlation.

Since there is no scatter plot provided, we can't give a specific answer to what type of correlation is present. However, it's essential to note that if as one variable increases, the other also increases, this indicates a positive correlation. If one variable decreases as the other increases, it indicates a negative correlation. No correlation would mean there is no discernible pattern or trend between the variables.

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