If the correlation coefficient between x and y is equal to -1,we say that x and y are
A) imperfectly negatively correlated.
B) perfectly negatively correlated.
C) lagging variables.
D) perfectly positively correlated.
E) countercyclical.

Question

Quizplus · Accepted Answer

When the correlation coefficient between x and y is -1, it means that they are perfectly negatively correlated. This means that they have a perfect linear relationship where as one variable increases, the other decreases in a proportional manner.

If the Correlation Coefficient Between X and Y Is Equal