Jon's Hypothesis

Jon hypothesized that people that earn more money tend to spend more money. He surveyed a sample and recorded his observations as a scatter plot. Does the data support Jon's hypothesis?

Yes No

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2 solutions

Pranshu Gaba
Feb 12, 2016

We can draw a line that passes very close to most of the points in the scatter plot. We see that the slope of the line is positive.

Hence we say there is a positive correlation between income and expense, and the data supports Jon's hypothesis. _\square

But correlation does not imply causality ...

Gio Piriashvili - 5 years, 3 months ago

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That's right! Nowhere in the problem or solution have I implied that correlation implies causation.

Pranshu Gaba - 5 years, 3 months ago
Kamalpreet Singh
Feb 12, 2016

The graph is increasing. So the answer is yes.

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