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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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.
|
x |
3 |
7 |
15 |
35 |
75 |
|
y |
40 |
35 |
30 |
25 |
18 |
(a) Make a scatter diagram and draw the line you think best fits the data.
(b) Would you say the correlation is low, moderate, or strong? positive or negative?
(c) Use a calculator to verify that Σx = 135, Σx2= 7133, Σy = 148, Σy2= 4674, and Σ xy = 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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