Question

(c) for an organization whose funding in year 1 was above the average, would you expect their funding in year 2 to be above or below average? i would expect the funding in year 2 to be above average since r is positive. (d) which of the following is the best interpretation of the correlation coefficient? option 1: if we increase the funding for an organization in year 1, this will cause the funding in year 2 to increase. option 2: if we increase the funding for an organization in year 2, this will cause the funding in year 1 to increase. option 3: some organizations get more funding than others, and those that are more highly funded in year 1 were generally more highly funded in year 2 as well.

Explanation:

Correlation shows a relationship, not causation. The third option correctly states that highly funded organizations in Year 1 tend to be highly funded in Year 2 (a positive correlation pattern), without implying causation like the first two options (which wrongly suggest funding in one year causes the other year's funding to change).

Answer:

Some organizations get more funding than others, and those that are more highly funded in Year 1 were generally more highly funded in Year 2 as well.