Question: The following data are based on information from Domestic Affairs. Let x be the average number of employees in a .I group health insurance plan, and let y be the average administrative cost as a percentage of claims.

1. Make a scatter diagram and draw the line you think best fits the data.
2. Would you say the correlation is low, moderate, or strong? positive or negative?
3. Use a calculator to verify that \(\Sigma x=135, \Sigma x^{2}=7133, \Sigma y=148\),

\(\Sigma y^{2}=4674\), and \(\Sigma x y=3040 .\) Compute \(r\) As \(x\) increases, does the value of \(r\) imply that \(y\) should tend to increase or decrease? Explain.

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