Question

In: Statistics and Probability

A positive correlation coefficient between years of job experience and salary would mean that: A) more...

A positive correlation coefficient between years of job experience and salary would mean that:

A) more job experience gets same salary

B) more job experience gets lower salary

C) more job experience gets higher salary

D) less job experience gets higher salary

Solutions

Expert Solution

The correct option is C) more job experience gets higher salary [ANSWER]

Explanation:

The correlation coefficient is a measure of strength and direction of linear relationship between two variables.

A positive correlation coefficient between two variables X and Y means that as X increases, Y increases and as X decreases, Y decreases.

A negative correlation coefficient between two variables X and Y means that as X increases, Y decreases and as X decreases, Y increases.

A zero correlation coefficient means that X and Y are not linearly related.

Here, since the variables 'job experience' and 'salary' have a positive correlation coefficient, it means that as the job experience increases, salary increases. Thus, the correct option is C) more job experience gets higher salary.

Option A) is not correct because 'more job experience gets same salary' would have been true if the correlation coefficient had been zero between 'job experience' and 'salary'.

Option B) is not correct because 'more job experience gets lower salary' would have been true if the correlation coefficient had been negative between 'job experience' and 'salary'.

Option D) is not correct because 'less job experience gets higher salary' would have been true if the correlation coefficient had been negative between 'job experience' and 'salary'.

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