Question

The correlation between Education and Income as measured on 110 people is r= 0.90 Explain whether or not each of the following possible conclusions is justified. ​a) When Education ​increases, Income increases as wellincreases as well. ​b) The form of the relationship between EducationEducation and IncomeIncome is straight. ​c) There are severalseveral outliers in the scatterplot of IncomeIncome vs. EducationEducation. ​d) WhetherWhether we measure EducationEducation in years or monthsyears or months​, the correlation will still be 0.90still be 0.90.

Answer 1

Justified :

C) There are several outliers in the scatterplot of Income vs Education

D) Whether we measure age in years or months, correlation will be same

Explanation:

Correlation is the statistical relationship of co-movement between two variables

• Not Justified : Income does not directly vary (increase with rise) in age, at all age levels. Eg - Education doesn't increase with income at childhood age, at old age
• Nit justified : The relationship between variables could be non straight i.e non linear also. Eg - It could be quadratic
• Justified : Some people having exceptional Age , Income relationship. Eg - people working after retirement age
• Justified : Correlation stays independent of unit of measurement, it is just based on co-variation in the variables