In: Economics
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.
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.