Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Statistics and Probability Expert

Much has been written about the relationship between students' SAT test scores and their family's income.  Generally speaking, there is a strong positive correlation between income and SAT scores.  Consider and discuss the following questions as you respond:

  1. What does this correlation tell you? 

Solution:

The correlation between the two variables explains the amount of relationship exists between the two variables. If we get the high positive correlation coefficient then we say that there is a strong positive linear relationship or association exists between the given two variables. If there is a high negative correlation then we interpret this as a strong negative linear association exists between the two variables. In the high positive correlation, as the first variable increases, the second variable also increases. For the given example, as the SAT scores increases the income also increases and as the SAT scores decreases, the income decreases. This means there is a high or strong positive correlation exists between the income and SAT scores.

  1. Is this correlation evidence that having a high family income causes one to have high SAT scores? 

Solution:

This correlation does not evidence that the high family income causes one to have high SAT scores at the given level of significance. This does not means it is happens all times, there would some little possibility of having a high family income does not causes to have high SAT scores. We are talking about in-general phenomenon about the relationship and we do not apply this relationship to each and every one person. We can say that there is a 95% possibility of having high family income causes one to have high SAT scores.

  1. Is this correlation evidence that high SAT scores are a cause of higher income?  Or, does this tell you something else?  Explain your answer.

Solution:

Yes, the correlation evidence that high SAT scores are a cause of higher income. For the given example, the SAT scores is the independent variable and the income is the cause or dependent variable. Also, it is important to understand that the results are generalized and we cannot claim 100% surely. We claim the statement about correlation exists between high SAT scores and higher income at the given level of significance.

  1. Explain why correlation alone is rarely sufficient to demonstrate cause.

Solution:

As we discuss in the above discussion that we cannot apply the correlation results at the personal level and this is the general phenomenon about the relationship. This correlation explains the general relationship between the two variables and due to this reason the correlation alone is rarely sufficient to demonstrate cause. 

Questions about Post:

What do you think would be the (dependent) variable to cause the income to be higher? Is it safe to say that ongoing research would be considered since correlation is not always accurate? Do you think that the conclusion of this discussion would be different if this was measured on a personal basis than a generalized platform? 

Response:

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M91774852
  • Price:- $30

Priced at Now at $30, Verified Solution

Have any Question?


Related Questions in Statistics and Probability

The seaboard shipping company has a warehouse terminal in

The Seaboard Shipping Company has a warehouse terminal in Spartanburg, South Carolina. The capacity of each terminal dock is 3 trucks. As trucks enter the terminal, the drivers receive numbers, and when one of the three ...

Suppose that 20 of men p20 and 15 of women p 15 are

Suppose that 20% of men (P=.20) and 15% of women (P= .15) are carriers of a particular genetic trait. That trait can only be inherited by a child if both parents are carriers. What is the probability that a child is born ...

The following is a partial relative frequency distribution

The following is a partial relative frequency distribution of grades in an introductory statistics course. Grade     Relative Frequency A .22 B                       ? C                       .18 D                        ...

A firm requires an investment of 18000 and will return

A firm requires an investment of $18,000 and will return $26,000 after one year. If the firm borrows $10,000 at 8% what is the return on levered equity?

An annual survey of first-year college students ask 273000

An annual survey of first-year college students ask 273,000 students about their attitudes on a variety of subjects. According to a recent survey, 57% of first-year students believe that abortion should be legal. Use 0.0 ...

A 10-year annuity-immediate pays 100 quarterly for the

A 10-year annuity-immediate pays 100 quarterly for the first five years. Starting year 6, the annuity immediate pays 300 quarterly for the remaining five years. There is a nominal annual interest of 8% convertible quarte ...

What would be the net annual cost of the following checking

What would be the net annual cost of the following checking account? Interest earnings of 3 percent with a $550 minimum balance; average monthly balance, $800; monthly service charge of $15 for falling below the minimum ...

The beta corp has decided to enter the next generation in

The BETA Corp. has decided to enter the next generation in customer service. In order to do so they need to purchase a new piece of equipment. The equipment is highly specialized and needs to be created to exact specific ...

A company making refrigerators strives for the internal

A company making refrigerators strives for the internal temperature to have a mean of 37.5 degrees with a standard deviation of 0.6 degrees, based on samples of 100. A sample of 100 refrigerators have an average temperat ...

1 investment a will return to you 2011 in one year if you

1) Investment A will return to you $2011 in one year if you invest $1750 today. Investment B will return to you $3146 in one year. What is the most you will pay for Investment B? Round to the dollar.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As