Exam code: 0607
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True or False?
A scatter diagram is used to identify whether there is a relationship between two different quantities (variables).
True.
A scatter diagram is used to identify whether there is a relationship between two different quantities (variables).

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What type of correlation is shown in the diagram below?

The type of correlation shown is negative correlation.
The data points follow a general trend from the top left of the graph to the bottom right.
True or False?
The data points in a strong correlation loosely follow a straight line.
False.
The data points in a strong correlation closely follow a straight line.
If the points only follow a straight line loosely, then they show a weak correlation.
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True or False?
A scatter diagram is used to identify whether there is a relationship between two different quantities (variables).
True.
A scatter diagram is used to identify whether there is a relationship between two different quantities (variables).
What type of correlation is shown in the diagram below?

The type of correlation shown is negative correlation.
The data points follow a general trend from the top left of the graph to the bottom right.
True or False?
The data points in a strong correlation loosely follow a straight line.
False.
The data points in a strong correlation closely follow a straight line.
If the points only follow a straight line loosely, then they show a weak correlation.
Describe the relationship between quantity A and quantity B if they are positively correlated.
Because the quantities A and B are positively correlated, if quantity A increases, then quantity B will also increase.
E.g. the number of ice creams sold by a café is positively correlated with the air temperature. As the air temperature increases, so does the number of ice creams sold by the café.
What does the phrase "correlation does not imply causation" mean?
The phrase "correlation does not imply causation" means that although a correlation may be noticed between two different quantities, it does not necessarily mean that a change in one quantity causes the other to change.
E.g. the number of ice creams sold by a cafe and the number of bottles of suncream sold by a shop may be positively correlated.
More ice creams being sold does not cause more bottles of sun cream to be sold, but both quantities may increase because of a third related variable, such as as an increase in the number of hours of sunshine.
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