Explain correlation coefficient, Basic Statistics

Assignment Help:

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.

1619_Explain Correlation Coefficient.png

Data is said to have a perfect correlation if all points lie exactly along a line.

259_Explain Correlation Coefficient1.gif

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.


Related Discussions:- Explain correlation coefficient

Elaborate accounting procedures , All procedures that discover, recognize h...

All procedures that discover, recognize history, move, sustain, and review economical information to either generate economical statements or to provide inner control.

Method of analysis used by the firm, 1. (i) Complaints were made about the ...

1. (i) Complaints were made about the level of pollutants in the discharge from a certain factory.  The factory refuted the complaints by showing the results of their own analysis

Prepare journal entries, Quick Company acquired a piece of equipment in Yea...

Quick Company acquired a piece of equipment in Year 1 st cost $100,000. The equipment has a 10-year estimated life, zero salvage value and a depreciation of a straight line basis.

How audit works , A methodical selection of the adequate, qualified evident...

A methodical selection of the adequate, qualified evidential issue needed to verify the equity of management''s claims in the fiscal reports or to assess whether management has wis

Calculate the weighted average cost of capital, The Foschini Group has just...

The Foschini Group has just issued a batch of preference shares that will pay a constant dividend of R8, beginning 6 years from now. If the required rate of return is 8%, what does

International accounting standards board-iasb, IASB -International Accounti...

IASB -International Accounting Standards Board : IASB is an independent body based in London, which is responsible for setting accounting standards. IASB started operations in the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd