RESEARCH METHODOLOGY

INTRODUCTION

APPROACHES IN RESEARCH

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which correlation coefficient demonstrates the highest correlation?
A
0.92
B
-0.38
C
-0.11
D
0.67
Explanation: 

Detailed explanation-1: -Summary:-0.85 (Option d) is the strongest correlation coefficient which represents the strongest correlation as compared to others.

Detailed explanation-2: -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. A correlation close to zero suggests no linear association between two continuous variables.

Detailed explanation-3: -The relationship between two variables is generally considered strong when their r value is larger than 0.7. The correlation r measures the strength of the linear relationship between two quantitative variables.

Detailed explanation-4: -The correlation coefficient is calculated to be-0.96. This strong negative correlation signifies that as the temperature decreases outside, the prices of heating bills increase (and vice versa). When it comes to investing, a negative correlation does not necessarily mean that the securities should be avoided.

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