Question

37. A correlation coefficient of r = -0.98 between two quantitative variables A and B indicates that
A. As A increases, B tends to increase.
B. Changes in A cause changes in B.
C. As A increases, B tends to decrease.
D. There is a very weak association between A and B, and change in A will not affect B.

Please show work using excel functions!

Answer 1

37. The correlation co-efficient between A and B is - 0.98.

We can see that the absolute value of correlation is 0.98, which is close to 1 i.e. the correlation is very high. It indicates that A and B are strongly associated i.e. the linear relationship between A and B is very strong.

Also, note that, the sign of the correlation co-efficient is negative, which indicates increase in A causes decrease in B and vice-versa.

Hence, Option (C) is the correct choice.