question archive 1) When interpreting a correlation coefficient, A) it’s important to look at the +/– sign
1) When interpreting a correlation coefficient, A) it’s important to look at the +/– sign
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1) When interpreting a correlation coefficient,
A) it’s important to look at the +/– sign.
B) it’s important to look at the magnitude.
C) it indicates the strength of the relationship.
D) all of the above.
2) The correlation between two random variables X and Y
A) cannot be negative since variances are always positive.
B) is the covariance squared.
C) can be calculated by dividing the covariance between X and Y by the product of the two standard deviations.
D) is given by corr(X, Y ) = Cov(X,Y ) . Var(X) Var(Y )
3) If two random variables are positively correlated,
A) their covariance will be very large.
B) their covariance will be positive.
C) we cannot tell from the covariance.
D) their correlation coefficient will equal to 1.
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Answer:
1....D) all the above
Explanation:- When interpreting a correlation coefficient, it is important to look degree ( magnitude) and direction of of the relationship.
2.... c Can be calculated by dividing the covariance between x and Y by the product of two standard deviations.
Explanation: coefficient of correlation (r)= cov(x,y )/ (SDx .SDy)
3.......B. their covariance will be positive
Explanation:- The covariance measures the directional relationship between the two variables. Two variable moves to be close when covariance is positive.
( In case of negative covariance the variables move in the opposite direction)
