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There is a correlation of r = −.74 between the cost of bananas and new passenger car sales in the United States (Vigen, n.d.). Which of the following is an appropriate conclusion? 1 pointAn increase in the cost of bananas causes a decrease in new passenger car sales.There is a statistically significant relationship between the cost of bananas and new passenger car sales.As the cost of bananas decreases, new passenger car sales decrease.As the cost of bananas increases, new passenger car sales decrease.

Question

There is a correlation of r = −.74 between the cost of bananas and new passenger car sales in the United States (Vigen, n.d.). Which of the following is an appropriate conclusion? 1 pointAn increase in the cost of bananas causes a decrease in new passenger car sales.There is a statistically significant relationship between the cost of bananas and new passenger car sales.As the cost of bananas decreases, new passenger car sales decrease.As the cost of bananas increases, new passenger car sales decrease.

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Solution

The most appropriate conclusion from the given correlation of r = -0.74 between the cost of bananas and new passenger car sales in the United States would be: "As the cost of bananas increases, new passenger car sales decrease."

This is because a negative correlation coefficient (r) indicates an inverse relationship between the two variables. In other words, as one variable increases, the other decreases. Therefore, if the cost of bananas increases, new passenger car sales would decrease, according to this correlation.

However, it's important to note that correlation does not imply causation. This means that while these two variables move in opposite directions, we cannot conclude from this data alone that the increase in the cost of bananas is the cause of the decrease in new passenger car sales. There could be other factors at play influencing this relationship.

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