Question

You are interested in knowing whether wealthier people are happier. You collected data from fifty people about their incomes and their overall happiness levels on a scale of 1 to 10. Upon analyzing the results, you find that the correlation coefficient has a value of −0.25. On the basis of this data, respond to the following:

• How would you interpret the correlation coefficient in terms of strength and direction?
• How would the results be affected if you increased the number of subjects in the study to one thousand? Why might that affect the overall correlation?
• How important is it to randomly select subjects? Explain in detail using an example of a sample that might not be truly representative of the population.

Answer 1

Here it is given that r=-0.25 which means this is frail negative relationship.

Presently here n=50, on the off chance that we increment the example size to 1000 it is nevertheless evident that we will get more information so the examination become progressively precise. In other sense in 50 individuals if half won't offer response we will wind up with just information of 25, however if there should be an occurrence of 1000 if half denies despite everything we have n=500 a major number.

It is imperative to choose information arbitrarily in light of the fact that haphazardly chosen information are one-sided free and gives fair estimator for populace.

Give us a chance to consider a case of understudies intrigued for youth celebration in a school. On the off chance that I gather consider insights class as an example and get information of the considerable number of understudies this won't be a delegate of the populace here which is school.