BUSINESS ADMINISTRATION
BUSINESS ANALYTICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -A zero correlation exists when there is no relationship between two variables. For example there is no relationship between the amount of tea drunk and level of intelligence.
Detailed explanation-2: -Zero or no correlation: A correlation of zero means there is no relationship between the two variables. In other words, as one variable moves one way, the other moved in another unrelated direction.
Detailed explanation-3: -Correlation is not influenced by the change in scale. Covariance assumes the units from the product of the units of the two variables. Correlation is dimensionless, i.e. It’s a unit-free measure of the relationship between variables.
Detailed explanation-4: -If the correlation coefficient of two variables is zero, there is no linear relationship between the variables.