Health Insurance: Administrative Cost The following data are based on information from Domestic Affairs. Let x be
Question:
Health Insurance: Administrative Cost 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 think best fi ts the data.
(b) Would you say the correlation is low, moderate, or strong? positive or negative?
(c) Use a calculator to verify that x 5 135, x2 5 7133, y 5 148, y2 5 4674, and xy 5 3040. Compute r. As x increases from 3 to 75, does the value of r imply that y should tend to increase or decrease?
Explain.
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Related Book For
Understanding Basic Statistics
ISBN: 9781305548893
7th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
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