• Card 126 / 180: A correlation coefficient equal to 1 best describes the relationship between two variables (x and y) in which of the following ways?
    A) The value of the correlation coefficient means that when x increases, y tends to increase, and when x decreases, y tends to decrease.
    B) The value of the correlation coefficient means that when x increases, y tends to decrease, and when x decreases, y tends to increase.
    C) The value of the correlation coefficient means that when x increases, y tends to decrease by exactly the same amount.
    D) The value of the correlation coefficient means that when x increases, y tends to increase by exactly the same amount.

    Answer:
    D) The value of the correlation coefficient means that when x increases, y tends to increase by exactly the same amount.

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Business Statistics

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Attribution:  David T. Bourgeois, PhD; Bharatendra K. Rai, PhD. Business Statistics. The Saylor Academy 2014, http://www.saylor.org/courses/bus204/
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