--%>

What is means of correlation coefficient for two variables

What does this mean while we say that the correlation coefficient for two variables is -1? What does it mean if this value were zero? What does it mean if it were +1?
Correlation is calculated by the correlation coefficient, represented through the letter r. The correlation coefficient can take on values among +1.0 (perfect positive correlation) to -1.0 (perfect negative correlation).  The closer r is to +1.0, the more the two variables will tend to move along with each other at the similar time.  The closer r is to -1.0, the more the two variables will tend to move opposite each other at the similar time.  An r value of zero denotes that the variables’ values aren't associated at all.  It is known as statistical independence.

   Related Questions in Finance Basics

  • Q : Explain Fiscal Committees Fiscal

    Fiscal Committees: The committees of members in every house of the Legislature which review the fiscal impact of proposed legislation, comprising the Budget Bill. Presently, the fiscal committees comprise the Senate Budget and Fiscal

  • Q : What is Department Department: The

    Department: The governmental organization, generally belonging to the third level of the state organizational hierarchy as stated in the Uniform Codes Manual.

  • Q : How is finance associated to accounting

    How is finance associated to the disciplines of accounting and economics? Financial management is basically a combination of accounting and economics. Firstly, financial managers employ accounting information such

  • Q : Question based on multiplier Normal 0

    Normal 0 false false

  • Q : Portfolio Analysis And Management My

    My Assignment is writing a Three page paper including executive Summary and investing 1million Dollars in Stocks, Bonds and Mutual Funds and Other Assets and Recording Each Investments made Every Friday of the week, Beginning On September 7th to October 30 on An excel spreadsheet which has been crea

  • Q : What are Exempts Exempts : The state

    Exempts: The state employees exempt from civil service pursuant to the subdivision (e), (f), or (g) of Section 4 of Article VII of the California Constitution. Illustrations comprise department directors and some other gubernatorial appointees.

  • Q : Use of obtainable resources Normal 0

    Normal 0 false false

  • Q : What is Special Fund for Economic

    Special Fund for Economic Uncertainties: It is a fund in the General Fund (that is, a similar reserve is involved in each special fund) authorized by the statute and Budget Act Control Section 12.30 to offer for emergency situations.

  • Q : Describe Schedule 7A Schedule 7A : The

    Schedule 7A: The summary version of the State Controller’s Office detailed Schedule 8 position register for each department. The information replicated in this schedule is the base for the “Salaries and Wages Supplement” exhibited on

  • Q : Define the term Program Cost Accounting

    Program Cost Accounting (PCA): The level of accounting which identifies costs by activities executed in achievement of a purpose in contrast to the traditional line-item format. The aim of accounting at this level is to generate cost data adequately a