Question

In correlation problem both variables are:

a.

Equal

b.

Random

c.

Unknown

d.

Fixed​

Answer 1

Answer:

both variables are epual to each other

Answer 2

The correct answer is OPTION A: In the correlation problem, both variables are Equal.

• Correlation is a statistic used in the finance and investment industries to measure how closely two securities move in relation to one another.
• Correlations are used in advanced portfolio management and are calculated as the correlation coefficient, which must be between -1.0 and +1.0.
• Correlation is a measurement of how far two variables move in relation to each other.
• In finance, the correlation can be used to compare a stock's movement to that of a benchmark index.
• Correlation reveals whether x causes y or vice versa, but not if the link is established by a third factor.