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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.
1. What type of correlation coefficient would you use to examine the relationship between the following variables? Explain why you have selected the correlation coefficients. A.
United States: There are currently more than 10000 companies that are registered with the SEC (Securities Exchange Commission). Of these, around 1000 are non US companies. The non
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