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Posted by on Saturday, April 27, 2013 at 10:28pm.

Identify the direction and all possible interpretations of each of the following correlations. Be sure to identify each example as positive, negative, or zero (not correlated). Then give all possible causal interpretations for the results.

Margaret notices that the temperature in her office drops several degrees from July to December. In a careful review of the budget she discovers that the company’s utility expenses also drop from July to December.

  • stats - , Sunday, April 28, 2013 at 12:19pm

    For a positive correlation, both variables increase/decrease together.

    For a negative correlation, one variable increases while the other decreases.

    I'll let you suggest the causal relations. Does T cause E, E cause T, or some third factor effect both?

  • stats - , Sunday, April 28, 2013 at 1:42pm

    positive correlation because the cost of the bill expenses decreases while the temperature drops

    interpretations of the results is that temperature influenced by the air conditioner

  • stats - , Tuesday, September 2, 2014 at 11:21am


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