Multiple Choice
Let x be the average number of employees in a group health insurance plan, and let y be the average administrative cost as a percentage of claims. Suppose a random sample of employees gave the following information. As x increases, does the value of r imply that y should tend to increase, decrease, or remain the same? Explain.
A) Since r is positive, as x increases, y increases.
B) Since r is negative, as x increases, y increases.
C) Since r is positive, as x increases, y remains the same.
D) Since r is negative, as x increases, y decreases.
E) Since r is zero, as x increases, y decreases.
Correct Answer:

Verified
Correct Answer:
Verified
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