Question

(a) calculate the value of the correlation coefficient between sale price and size. (give the answer to three decimal places.) r = .701 correct: your answer is correct. (b) calculate the value of the correlation coefficient between sale price and land-to-building ratio. (give the answer to three decimal places.) r = -.3462 incorrect: your answer is incorrect. (c) if you wanted to predict sale price and you could use either size or land-to-building ratio as the basis for making predictions, which would you use?

Answer 1

.701

Explanation:

The reason for the option chosen is because the coefficient is closer to 1 which is the standard for correlation and also, the answer is rounded off to three decimal places as requested in the question.