Question

In: Statistics and Probability

For an inverse relationship between two variables, the sign of the correlation coefficient is "+" TRUE...

For an inverse relationship between two variables, the sign of the correlation coefficient is "+"
TRUE OR FALSE

Solutions

Expert Solution

Answer:- FALSE

  An inverse correlation, also known as negative correlation, is a contrary relationship between two variables such that they move in opposite directions. For example, with variables X and Y, as X increases, Y decreases, and as X decreases, Y increases. In statistical terminology, an inverse correlation is denoted by the correlation coefficient "r" having a value between -1 and 0, with r = -1 indicating perfect inverse correlation.

  • The value of r is always between –1 and +1: –1 ≤ r ≤ 1.
  • The size of the correlation r indicates the strength of the linear relationship between X and Y. Values of r close to –1 or to +1 indicate a stronger linear relationship between X and Y
  • If r = 0 there is absolutely no linear relationship between X and Y (no linear correlation).
  • If r = 1, there is perfect positive correlation. If r = –1, there is perfect negative correlation. In both these cases, all of the original data points lie on a straight line: ANY straight line no matter what the slope. Of course, in the real world, this will not generally happen.

SIGN of r

  • A positive value of r means that when X increases, Y tends to increase and when X decreases, Y tends to decrease (positive correlation).
  • A negative value of r means that when X increases, Y tends to decrease and when X decreases, Y tends to increase (negative correlation).

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