Question

State whether you believe the two variables are correlated. If you believe they are correlated, state whether the correlation is positive or negative. The repair bills of a car and its fuel consumption.

Answer 1

I believe they are correlated: positive correlation.

Explanation:

The higher the repair bills of a car, it means maybe having bad fuel injectors, will cause bad mileage allowing the car to consume more fuel. It is like say the inexorable decline of a car in areas including minor wears and incorrect adjustment etc impairs fuel economy. Thus, the higher the repair bills, the higher the fuel consumption. This is an example of a positive correlation. This means the value of y increases as there is an increase in the value of x.