(1) Any line that goes through the point of means makes the sum of residuals equal to 0. T or F

(2) A strong relationship between two variables always means those changes in one variable cause changes in the other. T or F

(3) Correlation is not resistant and strongly affected by a few outlying observations. T or F

(4) A correlation is always between 0 and 1. T or F

(5) Both correlation and regression require explanatory and response variables T or F

(6) Correlation can measure the direction and strength of nonlinear association T or F

(7) Every least-squares regression line passes through ( x , y ) T or F

(8)In least square regression, a residual is the vertical distance or deviation from the observation to the regression line. T or F

(9) Correlation is easily affected by linear transforming of x or y. T or F

(10) Area under the density curve sum up to 1. T or F

Rank the following in order, from highest to lowest, by the correlations you would estimate there to be between:

A Purchase price of a home and the yearly income of the purchasing family

B Purchase price of a home and the shoe size of the purchaser

C Purchase price of a home and age of the buyer Write the letters in order from highest to lowest.

(Highest) ___ ____ ____ (Lowest)