Question

A human resource manager is interested in the association between the age (AGE) of an employee and the dollar amount of health care claims made by the employee in a year (SHC). The manager decides to expand the model by adding another variable, EXER, which represents the number of hours per week that the employee indicates they spend on exercise or physical activity. The assumptions for the multiple regression model have been met. The variance inflation factor (VIF) for EXER is determined to be VIF = 1.033. A scatterplot of EXER vs. AGE has indicated that decreased levels of EXER have some association with increases in AGE. Using these two pieces of information, determine the correlation between EXER and AGE? Round to three decimal places. O A. 0.000 OB. -0.882 OC. -1.033 OD. -0.032 O E. -0.179

Answer 1

The correlation is negative. So by the formula of VIF:

$1.033 = \frac{1}{1-R^2}$

On solving above and taking negtive r value:

r = -0.179

Option E is correct.