Question

4. The auto insurance industry crashed some test vehicles into a cement barrier at speeds of 5 to 25 mph to investigate the amount of damage to the cars. They found a correlation of r = 0.60 between speed (MPH) and damage ($). If the speed at which a car hit the barrier is 1.5 standard deviations above the mean speed, we expect the damage to be the mean damage. A) equal to B) 0.36 SD above C) 0.60 SD above D) 0.90 SD above E) 1.5 SD above

Answer 1

Answer:

Correct option: D] 0.90 SD above

Explanation:

A correlation of r=0.60 between speed (MPH) and damage ($).

Speed is 1.5 standard deviations above the mean speed,

We expect the damage: 0.60 * 1.5 = 0.90

Hence we expect the damage 0.90 SD above the mean damage