--%>
Assignment Help - homework help

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 : Influence of opportunity costs How do

    How do opportunity costs influence the capital budgeting decision-making procedure? Opportunity costs reflect the foregone benefits of alternative not selected when a capital budgeting project is chosen. Any decrease in the cash flows of the fi

    		•
  • Q : Marketing of hardware stores Normal 0

    Normal 0 false false

    		•
  • Q : Difference in annuities due or ordinary

    Normal 0 false false

    		•
  • Q : Private closed economy based question

    Normal 0 false false

    		•
  • Q : Consumers advocates expressed concern

    Consumer's advocates expressed concern over such merger possibilities. Elucidate this statement.

    		•
  • Q : How are financial trades made on a

    How are financial trades made on a planned exchange?Each of exchange listed security is traded at a particulate location on the trading floor called the post. The trading is supervised through specialists who act either as brokers (bringing toge

    		•
  • Q : Standard deviation of the portfolio If

    If a stock with a standard deviation of 7% is combined with a stock that has a standard deviation of 5%, what will the standard deviation of the portfolio be? A) 6%B) Greater than 6%C) Less than 6%D) There is not

    		•
  • Q : What are Federal Funds Federal Funds :

    Federal Funds: For legal basis budgeting purposes, categorization of funds into which the money received in trust from an agency of the federal government will be deposited and finished by a state department in accordance with state and/or federal rul

    		•
  • Q : Explain Fund Condition Statement Fund

    Fund Condition Statement: A budget display, comprised in the Governor’s Budget, shortening the operations of a fund for the past, present, and budget years. The display comprises the starting balance, previous year adjustments, loans, revenue, t

    		•
  • Q : Explain Merit Salary Adjustment Merit

    Merit Salary Adjustment (MSA): The cost factor resultant from the periodic raise in salaries paid to the personnel occupying authorized positions. The personnel usually receive a salary raise of 5 percent per year up to the upper sala

    		•