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Withstand a major storm

There chance of the condo not being able to withstand a major storm is .008 and because there is a storm every year, the condo will endure 25 storms during the mortgage. .008 * 25 = .2, meaning there is a 20% chance the condo will incurr major damage. 20% of 25 years is 5 so its design life is 5 years.

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## Q : Cluster around a line of positive slope

If a data set has correlation coefficient equal to 0.9, which of the following is necessarily true about the data points of its scatter diagram? Justify your answer. (a) The points all lie on a line of slope 0.9. (b) The points all cluster around a