If both variables X and Y increase or decrease simultaneously, then the coefficient of correlation will be
Positive
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SOLUTION
TO DETERMINE
If both variables X and Y increase or decrease simultaneously, then the coefficient of correlation will be _____
EVALUATION
We know that in the case of simple regression i.e when two regression curves are linear then their degree of collinearity is measured by the quantity known as " coefficient of correlation "
If the increase in the value of the one variable brings on average the increase in the value of the other variable , then these two variables are said to be positively correlated
Thus we conclude that if both variables X and Y increase or decrease simultaneously, then the coefficient of correlation will be positive
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