Question

If the correlation coefficient is 0.96, how confident can you be that your predicted value for the cost of a call at 70 minutes is close to the exact value for the cost of a call at 70 minutes?

Pick one of the options below and explain your answer?

Very confident
Somewhat confident
Not confident

Answer 1

very confident because a correlation coefficient of 1 is perfect then a correlation coefficient of .96 means it is like 96% accurate

Answer 2

Very confident

Explanation:

The closer the correlation coefficient is to 1, the stronger the correlation. Anything above .4 is relatively strong. So I would be very confident.