📊 GMAT Exam Prep

A scatter plot shows the relationship between a country's annual GDP growth rate and its unemployment rate over 20 years. The plot displays points that generally trend downwards from left to right, but with noticeable scatter, particularly at the extremes. What can be inferred about the relationship between GDP growth and unemployment?

A Higher GDP growth causes lower unemployment, with a strong causal link.
B There is a moderate negative correlation between GDP growth and unemployment.
C GDP growth and unemployment are unrelated, despite the visual trend.
D Lower unemployment consistently leads to higher GDP growth.

✓ Correct Answer: Option B

A downward trend from left to right indicates a negative correlation (as one increases, the other decreases). 'Noticeable scatter' suggests the correlation is not perfectly strong, making 'moderate negative correlation' the most accurate inference.

💡 Why is B) the correct answer?

The correct answer to the question "A scatter plot shows the relationship between a country's annual GDP growth rate and its unemployment rate over 20 years. The plot displays points that generally trend downwards from left to right, but with noticeable scatter, particularly at the extremes. What can be inferred about the relationship between GDP growth and unemployment?" is Option B: There is a moderate negative correlation between GDP growth and unemployment..

The other options — A) Higher GDP growth causes lower unemployment, with a strong causal link., C) GDP growth and unemployment are unrelated, despite the visual trend., D) Lower unemployment consistently leads to higher GDP growth. — are incorrect for this GMAT Exam Prep question. As explained above: A downward trend from left to right indicates a negative correlation (as one increases, the other decreases). 'Noticeable scatter' suggests the correlation is not perfectly strong, making 'moderate n…

📚 About This GMAT Exam Prep Practice Question

This 3-level GMAT Exam Prep question from the Data Insights topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GMAT Exam Prep practice test or use flashcards for spaced repetition review.

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