Question

In: Statistics and Probability

Suppose the correlation between two variables is +0.8. If the range of the predictor variable, X...

Suppose the correlation between two variables is +0.8. If the range of the predictor variable, X in the scatter plot is reduced, which of the following could happen? (Assume no additional data are collected and the relationship between the variables is casual)

A) correlation, R, between X and Y may decrease.
B) Overall range of Y values may increase.
C) both (a) and (b)
D) neither(a) nor (b)

Solutions

Expert Solution

D) Neither (a) nor (b)

The property of correlation is,

correlation does not change by changing the origin of a variable.

correlation does not change by changing the scale of a variable.

Because if we reduce the overall value of x variable then correlation does not change if we change in both variable at different values then will change otherwise not.

Example:

> x
[1] 10 11 12 13 14 15 16 17 18 19 20
> y
[1] 20 21 22 23 24 25 26 27 28 29 30

cor(x,y) = 1

if we reduce the x variable by 3

then,

> x = x-3
> x
[1] 7 8 9 10 11 12 13 14 15 16 17

then,

cor(x,y) = 1

>>>>>>>>>>>>>>>>> Best Luck >>>>>>>>>>>>>>>>>>


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