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Let X Be the Average Number of Employees in a Group

Question 14

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. x28143273y5045352816\begin{array} { c | c c c c c } \hline x & 2 & 8 & 14 & 32 & 73 \\\hline y & 50 & 45 & 35 & 28 & 16 \\\hline\end{array} 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.

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