Select true statement regarding Correlation
Correct Answer: In moderately positive correlation, rise in one variable leads to rise in other
Description: Types of correlation Scatter diagram Correlation coefficient Interpretation perfectly positive correlation Both lines haves a positive slope (at 45 degree each); superimposed r=+1 Rise in one variable leads to propoionate rise in other perfectly negative correlation Both lines have a negative slope (at 45 degree each); superimposed r=-1 Rise in one variable leads to propoionate fall in other Moderately positive correlation Both lines have a positive slope 0<r<+1 Rise in one variable leads to rise in other Moderately negative correlation Both lines have negative slope -1<r<0 Rise in one variable leads to fall in other No (absent) correlation Both lines are perpendicular r=0 Rise / fall in one variable leads to no change in other Spurious (false) correlation No paicular pattern observed - No paicular pattern observed
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