BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Correlation coefficients whose magnitude are between 0.9 and 1.0 indicate variables which can be considered very highly correlated. Correlation coefficients whose magnitude are between 0.7 and 0.9 indicate variables which can be considered highly correlated.

Detailed explanation-2: -The magnitude of the correlation coefficient indicates the strength of the association. For example, a correlation of r = 0.9 suggests a strong, positive association between two variables, whereas a correlation of r =-0.2 suggest a weak, negative association.

Detailed explanation-3: -As a rule of thumb, a correlation greater than 0.75 is considered to be a “strong” correlation between two variables.

Detailed explanation-4: -In our example in Figure 1, the correlation between the two tests is 0.73, indicating a strong relationship because it is close to 1. Likewise, a correlation of r =-1 defines a perfect negative relationship between the two variables. A correlation of r = 0 means there is no relationship between the two variables.