Question 1
Solve the problem.
The table below shows the legal costs and the profits of a company from 2000 to 2005. Construct a scatter diagram for the data and state whether legal costs and profits for this company have no correlation, a positive correlation, or a negative correlation for this period.
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◦ Positive correlation
◦ Negative correlation
◦ Positive correlation
◦ No correlation
Question 2
State whether there is no correlation, a positive correlation, or a negative correlation between the x and y variables. If there is a correlation, state whether it is most likely due to coincidence, a common underlying cause, or a direct cause.
For a group of students in a statistics class, the scatter diagram compares their test scores (y) and the amount of loose pocket change they have(x).
◦ Negative correlation; common underlying cause
◦ No correlation
◦ Negative correlation; coincidence
◦ Negative correlation; direct cause
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