The Auto Insurance Industry Crashed Some Test Vehicles into a Cement

The auto insurance industry crashed some test vehicles into a cement barrier at speeds of 5 to 25 mph to investigate the amount of damage to the cars. They found a correlation of r = 0.60 between speed (MPH) and damage ($) . If the speed at which a car hit the barrier is 1.5 standard deviations above the mean speed, we expect the damage to be_______ the mean damage.

A) 0.36 SD above
B) equal to
C) 0.90 SD above
D) 1.5 SD above
E) 0.60 SD above

Correct Answer:

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