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Statistics and Probability

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Example of Correlation Interpretation

STATS-YXEMAL

You read a report that the correlation between the number of bedrooms in a house and the square footage of the house have a correlation of +0.72.

What is your interpretation?

A

72% of the time large homes have at least 3 bedrooms.

B

We are 72% sure there is a correlation between number of bedrooms and square footage.

C

Houses with fewer bedrooms tend to have higher square footage.

D

Houses with more bedrooms tend to have higher square footage.