Question

a) Define correlation coefficient. What are its properties?

b) Fit a straight line
to the following data. Compare the estimated values of the

dependent variable with its actual values X 5 8 10 12 13 15 17 16

Y 8 12 14 10 13 16 14 17.

Answer 1

a)==A correlation coefficient is a statistical measure of the degree to which changes to the value of one variable predict change to the value of another. In positively correlated variables, the value increases or decreases in tandem. ... Correlation coefficients are expressed as values between +1 and -1.