Given the following information, use a scatter plot to determine the correlation (if any) between age and income:
Age (years) 21 27 35 41 46 52 56
Income ($ Thousands) 38 51 53 64 72 76 80
To create a scatter plot of this data, you would plot each age-income pair as a point on a graph with Age on the x-axis and Income on the y-axis. Then you would visually assess if there is a relationship between Age and Income.
Plotting the given data points, the scatter plot may indicate a positive correlation between age and income - as age increases, income tends to increase as well. This is not a perfect correlation, as there is some variation in income for each age group, but overall there seems to be a general trend of higher income associated with higher ages.
To determine the correlation coefficient, you can use a statistical software or calculate it manually. The correlation coefficient r ranges between -1 and 1, with 1 indicating a perfect positive correlation and -1 indicating a perfect negative correlation. If the correlation coefficient is close to 1, it indicates a strong positive correlation between age and income in this case.