Final answer:
Understanding positive correlation in insurance costs and accidents.
Explanation:
Positive correlation: When the cost of auto insurance increases as the number of accidents increases, this represents a positive correlation. In this scenario, as the number of accidents goes up, the cost of auto insurance also increases.
Example: If a person has more accidents, insurance companies may perceive them as higher risk and charge more for insurance, showing a positive correlation.
Real-world scenario: Just like spending more time studying improves test performance, having more accidents can lead to higher insurance costs.
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