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Cuyamaca College Correlation Coefficient and Standard Deviation Questions

I’m working on a business question and need an explanation and answer to help me learn.

Question 1: What do we mean when we say that a result is statistically significant? What does it mean to say that a particular result is statistically significant at the 0.05 level or at the 0.01 level?

Question 2: Briefly describe the theoretical, relative frequency, and subjective methods for finding probabilities. What is a probability distribution?

Question 3: What is a correlation? What is a scatterplot, and how is one constructed?

  • Question 4: Define and distinguish between positive correlation, negative correlation and no correlation. What does the correlation coefficient, r, tell us about the strength of a correlation?
  • Question 5: If a correlation is very strong, can we conclude that one variable causes a change in the other variable, why?
  • Question 6: What does the square of the correlation coefficient, r2, tell u about a best-fit line? What is multiple regression?
  • Questions 7: What is the difference between finding a correlation between two variables and establishing causality between two variables?

Question 8: Define and distinguish among mean, median and mode.

  • Question 9: Distinguish between a uniform distribution and a distribution with one or more modes? What do we mean when a distribution is skewed?
  • Questions 10: In each scenario below, find the range and standard deviation.

Top 5 Celebrity Incomes. Listed below are the earnings (in millions of dollars) of the celebrities with the five highest incomes in a recent year. The celebrities in order are Steven Spielberg, Howard Stern, George Lucas, Oprah Winfrey, and Jerry Seinfeld.  Can this “Top 5” list be used to learn anything about the mean annual earnings of all celebrities?

332   302    235   225   100

  • Range:
  • Standard Deviation:
  • Blood Alcohol and Driving. Listed below are measurements of blood alcohol concentration (BAC) of drivers involved in fatal crashes and then given jail sentences (based on data from the U.S. Department of Justice):
  • 0.27  0.17  0.17  0.16  0.13  0.24  0.29  0.24  0.14  0.16  0.12  0.16


  • Standard Deviation:


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