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1. A colleague needs some help with a statistics problem: He brings you the plot shown below, along with a correlation coefficient of 0.03 which he calculated himself. The plot shows two numerical variables which are obviously strongly related, and as a result your colleague is afraid he made a mistake calculating the correlation coefficient: that is, he was surprised to get an answer so close to 0. Given only this information, which of the following responses is the best to give your colleague? A. The correlation coefficient measures the strength of the linear relationship, therefore two variables that have a strong non-linear association might still have a low correlation coefficient. B. Your colleague must have made a mistake in his calculations. A much higher correlation coefficient is expected for variables that show a clear association. 2. Fill in the blanks: A data point that has a negative residual is located ________ the regression line. A. above B. on C. below
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