Question

An insurance company’s database includes a variable, DAMAGE, that records, for each customer claim of automobile damage due to hail, the severity of the damage to the car. DAMAGE is recorded as 1 = minor damage, …, 5 = totaled. Also in the data table is DAY, the day of the week of the hail damage (Monday, Tuesday, …). One of the following graphs is an appropriate way to display the association between DAMAGE and DAY. Which one?

a. Cross-tabulation

b. Scatterplot

c. Side-by-side boxplots

Answer 1

Variable 1: DAMAGE is recoras ded as 1 = minor damage, …, 5 = totaled.

Variable 2: The day of the week of the hail damage (Monday, Tuesday, …)

Now, there are two variables and to understand the correlation between different variables. Both the variables are categorical variables as there is order in the values. For ex. Value 1 to 5 in damage according to damage amount and type of accident

Here, we can use cross tabulation method as this method analyse relationship between multiple variables.