Podcast
Questions and Answers
What does a Pearson correlation coefficient value of -1 indicate?
What does a Pearson correlation coefficient value of -1 indicate?
- A perfect negative correlation (correct)
- A strong negative correlation
- A weak negative correlation
- A moderate negative correlation
In which scenario would a correlation coefficient be considered meaningful according to the text?
In which scenario would a correlation coefficient be considered meaningful according to the text?
- Correlation coefficient lower than -0.9 in physics and chemistry
- Correlation coefficient between -0.5 and 0.5 in social sciences
- Correlation coefficient between -0.9 and 0.9 in physics and chemistry (correct)
- Correlation coefficient higher than 0.5 in social sciences
How is the Pearson correlation coefficient calculated?
How is the Pearson correlation coefficient calculated?
- Adding covariance to the product of standard deviations
- Dividing covariance by the product of variances
- Dividing covariance by the product of standard deviations (correct)
- Multiplying covariance by the sum of variances
What does a Pearson correlation coefficient value close to zero indicate about the relationship between variables?
What does a Pearson correlation coefficient value close to zero indicate about the relationship between variables?
When is a correlation coefficient considered statistically significant for sampled data?
When is a correlation coefficient considered statistically significant for sampled data?
What does the line of best fit determined through regression analysis represent?
What does the line of best fit determined through regression analysis represent?
What does a correlation coefficient of -1 indicate?
What does a correlation coefficient of -1 indicate?
Which type of correlation coefficient is the most common for assessing linear relationships?
Which type of correlation coefficient is the most common for assessing linear relationships?
What does a correlation coefficient of 1 represent?
What does a correlation coefficient of 1 represent?
Which industry might use correlation coefficients to assess the relationship between oil prices and stock returns?
Which industry might use correlation coefficients to assess the relationship between oil prices and stock returns?
What limitation does the Pearson coefficient have when assessing relationships between variables?
What limitation does the Pearson coefficient have when assessing relationships between variables?
What is the significance of a correlation coefficient value of 0?
What is the significance of a correlation coefficient value of 0?
