Question

Determine whether each of the following statements regarding the correlation coefficient is true or false.

		The correlation coefficient equals the proportion of times that two variables lie on a straight line.
		The correlation coefficient will be +1.0 if all the data points lie on a perfectly horizontal straight line.
		The correlation coefficient measures the strength of any relationship that may be present between two variables.
		The correlation coefficient must always lie between –1.0 and +1.0.

Answer 1

Ans:

1)False,correlation coefficient indicate strength and direction of relationship between two variables.

2)False,it may also be -1,when data points lie on a perfectly horizontal straight line.

3)True

4)True