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| 1. |
Interpret the value of r as 1, -1 and 0. |
| Answer» <html><body><p></p>Solution :When r = 1 , the correlation is perfect <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a>. In this case, <a href="https://interviewquestions.tuteehub.com/tag/proportional-1170279" style="font-weight:bold;" target="_blank" title="Click to know more about PROPORTIONAL">PROPORTIONAL</a> change in two variables is <a href="https://interviewquestions.tuteehub.com/tag/linear-1074458" style="font-weight:bold;" target="_blank" title="Click to know more about LINEAR">LINEAR</a> and is in the same <a href="https://interviewquestions.tuteehub.com/tag/direction-1696" style="font-weight:bold;" target="_blank" title="Click to know more about DIRECTION">DIRECTION</a>. <br/> When r = -1 , the correlation is perfect negative. In this case , proportional change in two variables is linear and is in the opposite direction. <br/> When r =0 , the two variables are uncorrelsted. There is no linear relationship between them. However, it does not <a href="https://interviewquestions.tuteehub.com/tag/imply-1037964" style="font-weight:bold;" target="_blank" title="Click to know more about IMPLY">IMPLY</a> that the two variables are independent.</body></html> | |