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: -Correlations range from-1.00 to +1.00. The correlation coefficient (expressed as r ) shows the direction and strength of a relationship between two variables. The closer the r value is to +1 or-1, the stronger the linear relationship between the two variables is.
Detailed explanation-2: -The closer r is to +1, the stronger the positive correlation is. The closer r is to-1, the stronger the negative correlation is. If |r| = 1 exactly, the two variables are perfectly correlated!
Detailed explanation-3: -When r (the correlation coefficient) is near 1 or −1, the linear relationship is strong; when it is near 0, the linear relationship is weak.
Detailed explanation-4: -The closer r is to 0, the weaker the linear relationship. The closer r is to-1, the stronger the negative linear relationship. And, the closer r is to 1, the stronger the positive linear relationship.
Detailed explanation-5: -The value of the number indicates the strengthof the relationship: r = 0 means there is no correlation. r = 1 means there is perfect positive correlation.