## Related questions with answers

You get paid on the first day of each month. You cash your check and pay all of your essential expenses. You keep the balance in your "discretionary spending" envelope. A scatter plot shows the number of days that have passed since you were paid and the amount left in your discretionary spending envelope. The explanatory x-variable is the number of days that have passed. The response y-variable is the amount left in your envelope. Is there a positive or negative correlation? Explain.

Solution

VerifiedYou get paid on the first day of each month. You cash your check and pay all of your essential expenses. You keep the balance in your "discretionary spending" envelope. A scatter plot shows the number of days that have passed since you were paid and the amount left in your discretionary spending envelope. The explanatory x-variable is the number of days that have passed. The response y-variable is the amount left in your envelope. Is there a positive or negative correlation? Explain.

Explanation

In this case, the day of the salary increases the money spent, that is, the amount of money in the envelope decreases. As the variable increases and the other decreases, it is a negative correlation.

## Create an account to view solutions

## Create an account to view solutions

## Recommended textbook solutions

#### Financial Algebra: Advanced Algebra with Financial Applications

2nd Edition•ISBN: 9781337271790Richard Sgroi, Robert Gerver#### Practice Problems for Financial Algebra: Advanced Algebra with Financial Applications

2nd Edition•ISBN: 9781337271820Robert Gerver## More related questions

1/4

1/7