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let x% be the mortgage interest rate and y be the number of new houses built per month in james county over the past 18 months. assume the following regression line: y= 140 - 31.5 x Are x and y positively corralated (A) yes; (B) no; (C) cannot determine



Answer :

The correct option (B) no; mortgage interest rate x and  number of new houses built per month y is not positively correlated.

Explain the term positive correlation?

  • Two variables which tend usually trend in the same direction are said to have a positive correlation.
  • Whenever one variable prefers to go down as the other goes down and whenever one variable tends to go up as the other goes up, there is a positive connection.
  • Correlations are a term used in finance to indicate how the movement of specific equities relates to the overall market.

For the stated question.

regression line: y = 140 - 31.5x

In which,

x% = mortgage interest rate

y =  number of new houses built per month

From the stated regression line equation, as the value of x increases thus, the corresponding value of y decreases.

Thus, mortgage interest rate x and number of new houses built per month y is not positively correlated.

To know more about the positive correlation, here

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