Which of the following statements about the correlation coefficient is correct?
A) The correlation coefficient measures risk.
B) The correlation coefficient is a number between -1 and +1.
C) The correlation coefficient measures how two variables move relative to each other.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

The correlation coefficient is a number that ranges from -1 to +1 and measures the strength and direction of a linear relationship between two variables. It does not measure risk and while it does measure how two variables move relative to each other, this is a more specific interpretation of what the correlation coefficient represents.

Which of the Following Statements About the Correlation Coefficient Is