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

a) Make a scatter diagram and draw the line you best thinks fits the data

b) Would you say the correlation is low, moderate or strong? Positive or negative?

c) Use a calculator to verify that ∑x=135, ∑x2=7133, ∑y=148, ∑y2=4674, ∑xy=3040. Compute r. As x increases does the value of r imply that y should tend to increase or decrease? Explain.