Question

Which is the best estimate of the correlation coefficient for the scatter plot?

A.1
B.-0.9
C.0.9
D.0.3

Answer 1

The best estimate of the correlation coefficient is 0.9 from the given data.

Explanation:

From the scatter plot, the line of best fit will have a positive slope.

So, the correlation coefficient ,
`\rho` is greater than 0.

so,
`\rho` ≠ - 0.9

Also, there is a deviation from absolute linearity.

So,
`\rho` ≠ 1

Again from the scatter plot it is closer to linearity than further.

Hence,
`\rho` ≠ 0.3 .

So
`\rho` = 0.9