Question

A high value of the correlation coefficient r implies that a causal relationship exists between x and y.

Question 10 options:

	True
	False

Answer 1

TRUE

A correlation is a measure or degree of relationship between two variables. A set of data can be positively correlated, negatively correlated or not correlated at all. As one set of values increases the other set tends to increase then it is called a positive correlation.As one set of values increases the other set tends to decrease then it is called a negative correlation.If the change in values of one set doesn't affect the values of the other, then the variables are said to have "no correlation" or "zero correlation."

A causal relation between two events exists if the occurrence of the first causes the other. The first event is called the cause and the second event is called the effect. Generally correlation between two variables does not imply causation but correlation become very high or low then correlation between two variables imply causal relationship. On the other hand, if there is a causal relationship between two variables, they must be correlated.