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PAGE: 721SET: ExercisesPROBLEM: 7
Please look in your text book for this problem Statement

The corresponding correlation coefficient is .

Generally the correlation coefficient, , has a specific range of values is .

never lies outside this range.

is perfect positive correlation and all the data points lie exactly on a straight line with positive gradient.

likewise is perfect negative correlation.

Since i.e., it is a perfect strong negative correlation since the graph is in the decreasing direction.

These have the cloud of data points and a trend line fitted to show the direction of the data.

The line looks like in the decreasing direction and the points will be near the line since they are not equal to .

The graph which satisfies the above conditions is Graph .

Graph is the correct choice.



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