i. The purpose of correlation analysis is to find how strong the relationship is between two variables. ii. A coefficient of correlation close to 0 (say, 0.08) shows that the relationship between two variables is quite weak.
iii. The strength of the correlation between two variables depends on the sign of the coefficient of correlation.
A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question

Quizplus · Accepted Answer

Statement (i) is correct as it defines the purpose of correlation analysis. Statement (ii) is also correct as a coefficient of correlation close to 0 indicates weak correlation. However, statement (iii) is incorrect as the sign of the coefficient of correlation indicates the direction of the relationship (positive or negative) but not the strength of the relationship.

I the Purpose of Correlation Analysis Is to Find How