ITPEC FE Subject A October 2024 Question 57
ITPEC FE Subject A October 2024 — Question 57 of 60
The scatter plot shows points trending from upper-left to lower-right (↘), indicating negative correlation between x and y.
- •Correlation coefficient r < 0 when y decreases as x increases
- •The plot looks linear, so simple linear regression is sufficient (no quadratic needed)
Why not others:
- (a) The data follows a linear trend, not a curve — quadratic regression is unnecessary
- (c) Positive correlation would show points trending upper-right (↗), opposite of this graph
- (d) Regression of y on x and regression of x on y are different lines — they only coincide when |r| = 1
Key rule: Scatter plot trending ↘ = negative r; ↗ = positive r. Regression lines y-on-x ≠ x-on-y.
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