Statistics: Correlation · Class 11 · CBSE · Commerce Economics
A correlation coefficient of -0.75 between the price of a product and its quantity demanded suggests that the two variables have:
Practice question from Statistics: Correlation (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
medium · MCQ · Q-A66B1A
A correlation coefficient of -0.75 between the price of a product and its quantity demanded suggests that the two variables have:
- A.A strong inverse linear relationshipCorrect answer
- B.A perfect direct relationship
- C.No relationship at all
- D.A weak direct relationship
Solution
The negative sign shows an inverse relationship, while the magnitude indicates a fairly strong linear association. The value is not , so the relationship is not perfect.
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