Question

In: Economics

1.How can we discern positive and negative correlation in a time series plot? A. In a...

1.How can we discern positive and negative correlation in a time series plot?

A.

In a positive​ correlation, you will look for the two different time series to have the same maximum heights above the trend. In a negative​ correlation, you will look for the two different times series to have the same minimum heights.

B.

Two time series are positively correlated when one series is high​ (low) and the other series is low​ (high). Two time series that are negatively correlated show one series high​ (low) when the other series is high​ (low).

C.

In a positive​ correlation, you will look for the two different time series to have the same minimum heights above the trend. In a negative​ correlation, you will look for the two different times series to have the same maximum heights.

D.

Two time series are positively correlated when one series is high​ (low) and the other series is high​ (low). Two time series that are negatively correlated show one series high​ (low) when the other series is low​ (high).

2.How can we discern positive and negative correlation in a scatter plot?

A.

The correlation is determined by the positioning of points along the best fit line. If more points are above the​ line, then the correlation is negative. If more points are below the​ line, then the correlation is positive.

B.

The correlation is determined by the slope of a straight line that best fits the points in the scatter plot. A positive correlation will contain a positive sloped​ line, and a negative correlation will contain a negative sloped line.

C.

The correlation is determined by the slope of a straight line that best fits the points in the scatter plot. A positive correlation will contain a negative sloped​ line, and a negative correlation will contain a positive sloped line.

D.

The correlation is determined by the positioning of points along the best fit line. If more points are above the​ line, then the correlation is positive. If more points are below the​ line, then the correlation is negative.

Solutions

Expert Solution

1.How can we discern positive and negative correlation in a time series plot?

D.is the right answer

Two time series are positively correlated when one series is high​ (low) and the other series is high​ (low). Two time series that are negatively correlated show one series high​ (low) when the other series is low​ (high).

2.How can we discern positive and negative correlation in a scatter plot?

B.is the right answer

The correlation is determined by the slope of a straight line that best fits the points in the scatter plot. A positive correlation will contain a positive sloped​ line, and a negative correlation will contain a negative sloped line.


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