Chapter 7, Problem 30E

To determine

To comment on the conclusion that was made on the correlation.

Explanation of Solution

A polling organization is checking its database to see if the two data sources it used sampled the same zip codes or not. And the organization finds that the correlation between five-digit zip code and the data source is $-0.0229$ . The organization concludes that the correlation is low enough to state that there is no dependency between the zip code and the source of data. This conclusion made by the organization is not justified because there are two other data sources to see if there is a relationship between the two. Moreover, the correlation is between the quantitative data and by looking at this it seems to be categorical data so, we cannot make conclusion by looking at the correlation.