Assume you run a correlation analysis and your XL Data Analyst informs you that you have a significant relationship.What can you use to determine how strong the relationship is?
A)the strength coefficient, which ranges from 1 to 10, with 10 being the strongest
B)the strength coefficient, which ranges from 1 to 5, with 5 being the strongest
C)the size of the correlation coefficient
D)the size of the beta
E)none of the above; correlation is not measured in terms of strength

Question

Quizplus · Accepted Answer

The size of the correlation coefficient indicates the strength of the relationship. A correlation coefficient of 1 indicates a perfect positive relationship, whereas a correlation coefficient of -1 indicates a perfect negative relationship. The closer the coefficient is to 0, the weaker the relationship. Therefore, the size of the correlation coefficient is the best choice to determine the strength of the relationship in a correlation analysis. Choices A, B, and D are not valid options as there is no universally accepted strength coefficient or beta coefficient range for correlation analysis. Choice E is incorrect as correlation is indeed measured in terms of strength.

Assume You Run a Correlation Analysis and Your XL Data