Question

In general, the value of a car decreases with age. what could be the correlation between the age and value of all cars? responses

a) 0.7
b) -0.7
c) 1
d) -1

Answer 1

The correlation between the age and value of all cars is likely a strong negative correlation, with -0.7 as a possible correlation coefficient indicating this relationship.

Step-by-step explanation:

The question is asking for the type of correlation between the age and value of all cars. Generally, as the age of a car increases, its value tends to decrease. This relationship would be a negative correlation because one variable increases as the other decreases. The correlation coefficient that indicates the strongest negative linear relationship is -1, and the weakest is 0. A correlation coefficient of -0.7 indicates a strong negative linear relationship but not as perfect as -1.

Therefore, the proper answer to the question 'What could be the correlation between the age and value of all cars?' would most likely be (b) -0.7, given that while vehicles typically depreciate over time, not all cars depreciate at the same rate, and there could be some variability in their values.