Mathematics, 08.10.2021 14:00 ijohnh14
14. Health Insurance: Administrative Cost The following data are based on information from Domestic Affairs. Let x be the average number of employees in a group health insurance plan, and let y be the average administrative cost as a percentage of claims.
x 3 7 15 35 75
y 40 35 30 25 18
Make a scatter diagram and draw the line you think best fits the data.
Would you say the correlation is low, moderate, or strong? positive or negative?
Use a calculator to verify that:
ββγx=135,ββx^2 γ=7133,ββγy=148,ββγy^2=4674,andββγx y=3040.γγγ
Compute r. As x increases from 3 to 73, does the value of r imply that y should tend to increase or decrease? Explain.
Answers: 1
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