The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down? E Click the icon to view the table of annual rates of returns. O Annual Rates of Returns If your goal is to have low correlation between the two investments, which two should stocks sh O A Stock A and Stock B Stock B Stock C Year Stock A O B. Stock B and Stock C 0.161 0.023 -0.669 1 1. 103 0.153 OC. Stock A and Stock C 2 0.182 0.064 0.176 0.440 3 0.226 If your goal is to have one stock go up when the other goes down, you should select - 0.077 -0 053 -0.009 0.012 - 0.359 6. - 0.062 -0.106 0.691 0.147 0.073 0.119 8. 0.008 -0.037 -0.062 9. 0.130 0.122 -0.015 10 0.144 0.066 -0.252 11 0.418 0.185 -0.441

Given the graph below, what type of correlation would you predict there is between the variables? CAR PRICE DEPENDING ON AGE Price (dollars) 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000- 4. 10 Age (years) O Positive correlation O Negative correlation O No correlation

Give an example of two variables that have a positive linear correlation. Give an example of two variables that have a negative linear correlation. Give an example of two variables that have no correlation. Below is the height in inches and weight in pounds of eleven individuals Height, x 62 63 66 68 70 72 73 74 74 75 75 Weight, y 195 190 250 220 250 255 260 275 280 295 300 x = 65 inches x = 69 inches x = 71 inches

Give an example of two variables that you would expect to have a correlation close to or equal to -1. Give an example of two variables that you would expect to have a correlation close to or equal to 0. Remember that survey question you wrote? Take the class responses to your survey as data related to the one variable of your question. Now, take the list of responses from the survey question that one of your classmates wrote.  Write down both lists of data. (If one sample size happens to be different from the other, cut the larger sample size down to that of the smaller sample size.) Calculate the correlation between the two variables. Describe the linear relationship between these two variables. (data for number 3) How many cars have you had so far in your lifetime? 0,1,1,1,2,2,2,2,3,3,3,3,4,4,5,6,6,7,10.   How many days per week do you exercise? 0,0,0,1,2,3,3,3,3,4,4,4,4,5,5,5,5,6,6,6

r = - 1

Suppose that two variables, x and y, have a correlation coefficient of −0.77. Which of the following statements are true? You must make a selection for each option. Click once to place a check mark for correct answers and click twice to empty the box for the wrong answers. check all that apply There is a strong relationship between these two variables. As x increases, y decreases. The variables have a negative linear relationship. As x increases, y increases. There is a weak relationship between these two variables.

Doctors are testing a new antidepressant. A group of patients, all with similar characteristics, take part in the study. Some of the patients receive the new drug, while others receive the traditional drug. The data are shown in the contingency table below. What is the relative risk of insomnia for those who receive the new drug? Round to two decimal places. Insomnia New drug- 52. No insomnia-226—total=278 Traditional drug-36. 295—331(total) Total- 88. 521. ( no insomnia)—— total-609

An LCBO employee compares the relationship between the price of 6 different vintage bottles of wine, and the number of those bottles that have been purchased in the last 3 months to see if there is a correlation between the number of bottles purchased and the price of the bottle. Number of Bottles of Wine Purchased in the Price of Wine Bottle ($) Last 3 Months 44 18 93 65 82 56 25 60 15 30 20 40