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Q. Explain Correlation Coefficient?
Ans.
The strength of a linear correlation is determined by how precisely the y variable shifts as the x variable increases. The two pictures on the right show data with a higher correlation than those on the left.
Data is said to have a perfect correlation if all points lie exactly along a line.
The correlation coefficient, r, is a measure of the strength of the correlation. It is a number between 1 and +1. +1 indicates a perfect positive correlation and 1 indicated a perfect negative correlation. If r is positive, then there is a positive correlation between the two variables. If r is negative, there is a negative correlation between the variables.
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Year : 2008 2009 2010 2011 2012 2013 sale : 111 120 114 123 117 126
PART 1 Shown below are the sales revenue and advertising cost data for seven companies published by International Advertising Age. COMPANY ADVERTISING ($ MILLIONS) SALES ($ BILLION
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