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Interpret the value of r as 1, -1 and 0. |
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Answer» Solution :When r = 1 , the correlation is perfect POSITIVE. In this case, PROPORTIONAL change in two variables is LINEAR and is in the same DIRECTION. When r = -1 , the correlation is perfect negative. In this case , proportional change in two variables is linear and is in the opposite direction. When r =0 , the two variables are uncorrelsted. There is no linear relationship between them. However, it does not IMPLY that the two variables are independent. |
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