Question
In: Statistics and Probability
Use your understanding of correlation coefficient, r, to answer the following questions. a) What values can...
Use your understanding of correlation coefficient, r, to answer the following questions.
a) What values can r take?
b) What values of r indicate a strong relationship between the variables?
c) If two variables, X and Y, have a correlation coefficient of r = .5 what can you say about their relationship?
d) If two variables, X and Y, have a correlation coefficient of r = -.02 what can you say about their relationship?
Solutions
Expert Solution
a) The correlation coefficient r can only vary from -1 to 1( inclusive of both the values ). Therefore the range of values here are given as:
b) A strong correlation coefficient value is defined as the range of values as:
For r > 0.7, we have a strong positive correlation and for r < - 0.7, we have a strong negative correlation between the 2 variables.
c) For a correlation coefficient of 0.5, it shows there is a moderate positive correlation between the 2 variables.
d) For a correlation coefficient of - 0.02, it shows a negative but very very low (almost no linear relationship ) between the 2 variables.
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