What are the properties of a correlation? What is a “negative” relation and what is a “positive” relation?

What are the properties of a correlation? What is a “negative” relation and what is a “positive” relation? Give examples of each using real variables.

Solutions

Expert Solution

Properties of Correlation Coefficient : It is denoted by r

The Correlation coefficient lies between -1 and 1
Correlation coefficient is independent of change of origin and scale
The Correlation coefficient is a unit free quantity
The Correlation coefficient is the geometric mean of two regression coefficient

When the value of Correlation coefficient is less than 0, it is called as negative Correlation coefficient.

Example The price and demand of a commodity.

As the price increases the demand of a particular commodity decreases

When the value of Correlation coefficient is greater than 0, it is called as positive Correlation coefficient.

Example : The height and weight of a group of persons

As the height increases, the weight is also increases.

orchestra answered 1 year ago

Next > < Previous

Related Solutions

a. Draw a scatter plot. Is this a positive or negative correlation? Explain what a positive correlation and negative correlation are. b.Compute the pearson correlation.

For the following scores, x y 0 4 2 9 1 6 1 9 a. Draw a scatter plot. Is this a positive or negative correlation? Explain what a positive correlation and negative correlation are. b.Compute the pearson correlation.

Post pairs of variables that exhibit positive correlation, negative correlation and no correlation. Could any of...

Post pairs of variables that exhibit positive correlation, negative correlation and no correlation. Could any of the proposed correlated variables be the result of causation? How could an experiment be designed to establish causation? Would it be ethical to do such an experiment? What percentage of the variation in the response variable do you think can be explained by the predictor variable? Do you think there are any lurking variables in your situation? Sample Student Response Positive Correlation: rain and...

What’s an example of a perfect positive and a perfect negative correlation.

What are the major impacts (positive and negative) of globalization in relation to global business, cultures,...

What are the major impacts (positive and negative) of globalization in relation to global business, cultures, ethics and societies?

What is different about what the sign of a correlation (negative or positive) tells us vs....

What is different about what the sign of a correlation (negative or positive) tells us vs. the magnitude of the correlation coefficient (i.e. how much r is greater than or less than zero)?

What is the correlation between the risk of an investment and its expected return? positive, negative,...

What is the correlation between the risk of an investment and its expected return? positive, negative, or no correlation?

what is IVF and what positive/negative ethical and eugenic concerns arise in relation to preimplantation diagnoses?

State whether each of the following is an example of a positive correlation or a negative...

State whether each of the following is an example of a positive correlation or a negative correlation. a. Higher education level is associated with a larger annual income. b. Increased testosterone is associated with increased aggression. c. The smaller the class size, the more students believe they are receiving a quality education. d. Rising prices of apples are associated with the sale of fewer apples.

when it comes to correlational research, what are some examples of positive and negative correlation? also,...

when it comes to correlational research, what are some examples of positive and negative correlation? also, what are the the good and bad things about coreelational research, if any

A) Differentiate between perfect negative correlation and perfect positive correlation. B) Explain the concept of diversification...

A) Differentiate between perfect negative correlation and perfect positive correlation. B) Explain the concept of diversification in investment portfolio. C) What are the two (2) advantages of Payback Period? D) Amaryllis Incorporated is attempting to evaluate the feasibility of investing RM95,000 in a piece of equipment that has a 5-year life. The firm has estimated cash inflows associated with the proposal as shown in the following table. The firm has a 12% cost of capital.

Subjects