Question -
Properties of correlation coefficient
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Answers
Properties of the Coefficient of Correlation.
1. Coefficient of Correlation lies between -1 and +1:
The coefficient of correlation cannot take value less than -1 or more than one +1. Symbolically,
-1<=r<= + 1 or | r | <1.
2. Coefficients of Correlation are independent of Change of Origin:
This property reveals that if we subtract any constant from all the values of X and Y, it will not affect the coefficient of correlation.
3. Coefficients of Correlation possess the property of symmetry:
The degree of relationship between two variables is symmetric as shown below:
4. Coefficient of Correlation is independent of Change of Scale:
This property reveals that if we divide or multiply all the values of X and Y, it will not affect the coefficient of correlation.
5. Co-efficient of correlation measures only linear correlation between X and Y.
6. If two variables X and Y are independent, coefficient of correlation between them will be zero.
- Correlation coefficient (r) has no unit. It is a pure number. Unit measurement are not part of r.
- Negative role of r - Inverse relation - change happens in opposite direction.
- The linear correlation coefficient is a real number between -1 and 1.If the linear correlation coefficient takes a value closer to -1, the correlation is strong and negative and will become stronger the closer approches -1.
- The linear correlation coefficient takes value close to 1, the correlation is strong and positive, and thus will become stronger the closer it approaches to 1.
- If a correlation coefficient takes value closer to 0, the correlation is weak.
- If r= 1 or r= -1, there is a perfect correlation, and the line on the scatter plot is increasing or decreasing. If r= 0 then there is no correlation.