Correlation Method Quiz

What is correlation?

• Correlation is a measure of the strength of a causal relationship between two variables.

• Correlation is a measure of the difference between two variables.

• Correlation is a statistical measure that describes the relationship between three variables.

• Correlation is a statistical measure that describes the relationship between two variables.

What is the range of correlation coefficient?

• 0 to 1

• 1 to 10

• -10 to 10

• -1 to 1

What does a positive correlation coefficient indicate?

• As one variable increases, the other variable decreases.

• There is no relationship between the two variables.

• As one variable increases, the other variable also increases.

• As one variable decreases, the other variable also decreases.

What does a negative correlation coefficient indicate?

• Positive relationship

• No relationship

• Direct relationship

• Inverse relationship

What is the formula to calculate correlation coefficient?

• (nΣxy - ΣxΣy) / sqrt((nΣx^2 - (Σx)^2)(nΣy^2 - (Σy)^2))

• (nΣxy - ΣxΣy) / (nΣx^2 + (Σx)^2)(nΣy^2 + (Σy)^2))

• (nΣxy - ΣxΣy) / (nΣx^2 - (Σx)^2)(nΣy^2 - (Σy)^2)

• (nΣxy + ΣxΣy) / sqrt((nΣx^2 + (Σx)^2)(nΣy^2 + (Σy)^2))

What is the range of correlation coefficient for a perfect positive correlation?

• 0 to 1

• 0 to 100

• 1 to 10

• -1 to 0

What is the range of correlation coefficient for a perfect negative correlation?

• 0

• 1

• -1

• 2

What is the range of correlation coefficient for no correlation?

• -2 to 2

• -1 to 1

• 0 to 1

• 1 to 2

What is the difference between correlation and causation?

• Correlation measures the strength of the relationship, while causation implies a weak relationship.

• Correlation measures the effect, while causation implies the cause.

• Correlation measures the direction, while causation implies the absence of direction.

• Correlation measures the relationship, while causation implies a cause-and-effect relationship.

What are the limitations of correlation analysis?

• Correlation analysis has limitations such as: correlation does not imply causation, assumes a linear relationship, sensitive to outliers, and does not provide information about the magnitude of the relationship.

• Correlation analysis cannot determine the direction of the relationship.

• Correlation analysis can only measure linear relationships.

• Correlation analysis is not suitable for categorical data.