RESEARCH METHODOLOGY

STATISTICAL TECHNIQUES AND TOOLS

MULTIPLE REGRESSION

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
If the Pearson correlation co-efficient R is equal to 1 then
A
There is a perfect positive relationship between the two variables
B
There is a negative relationship between the two variables
C
There is no relationship between the two variables
D
There is a positive relationship between the two variables
Explanation: 

Detailed explanation-1: -In general: If r =-1, then there is a perfect negative linear relationship between x and y. If r = 1, then there is a perfect positive linear relationship between x and y. If r = 0, then there is no linear relationship between x and y.

Detailed explanation-2: -A correlation coefficient of zero indicates that no linear relationship exists between two continuous variables, and a correlation coefficient of −1 or +1 indicates a perfect linear relationship.

Detailed explanation-3: -A perfect linear relationship (r=-1 or r=1) means that one of the variables can be perfectly explained by a linear function of the other. The intercept, b0, is the predicted value of Y when X=0. The slope, b1, is the average change in Y for every one unit increase in X.

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