Question

For following statements regarding concepts and uses of simple linear regression analysis, indicate whether the statement is true or false. If false, specify what will correct a false statement.

1. _______________ The correlation coefficient indicates the changes in ? associated with a unit change in ?.

2. _______________ All data points will fit the regression line exactly exactly if the sample correlation is either +1 or -1.

3. _______________ If ? > 0, then as ? increases, ? tends to increase.

4. _______________ If ? is very close either +1 or -1, then there is a cause and effect relationship between ? and ?.

Answer 1

1) False.

The correct statement is "The regression coefficient indicates the changes in ? associated with a unit change in ?."

2) True.

If r = 1 then the correlation between the two variable is called perfect positive correlation between them and all the points lies on the regression line with a positive slope.

If r = -1 then the correlation between the two variable is called perfect negative correlation between them and all the points lies on the regression line with a negative slope.

3) True.

4) False.

There exist correlation between two variables this does not mean there exist cause and relationship is a cause and  effect relationship between ? and ?.