Concept explainers
Open-Ended Describe a real world situation that would show a strong
To explain:reasoning a real world situation that would show a strong negative correlation.
Explanation of Solution
Given Information: describe a real world situation which shows a strong negative correlation.
For negative correlation between two quantities one should decrease while other increases.
Generally this happens if the price of an item decreases then its demand increases.
For example: If price of mobile phone A is less than the price of mobile phone B with same specifications then mobile phone A will be sold more as compare to mobile phone B.
Hence, there is strong negative correlation between the rate of an item and its demand and vice-versa.
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