These data give the median dollar value in 2009 of homes in the 50 states and District of Columbia along with the average annual premium for homeowners’ insurance (from the Statistical Abstract of the United States).
(a) Would you expect these variables to be dependent or independent? What would you expect the correlation to be?
(b) Draw the scatterplot of the average premium on the median value. Describe the association.
(c) Find the correlation between the variables in the scatterplot.
(d) What might explain the size of the correlation between these two variables?