Question

Which the correlation between two variables is unity there is?

Answer 1

SOLUTION

TO CHOOSE THE CORRECT OPTION

Correlation between the two variables is unity, there is

a. perfect negative correlation

b. perfect correlation

c. no correlation

d. perfect positive correlation

EVALUATION

We know that in case of simple regression i.e when two regression curves are linear then their degree of collinearity is measured by a quantity known as correlation coefficient. It is denoted by r

Case : I

When r = 1 we say that the the correlation is perfectly positive and this indicates that there is equal proportional change in the same direction i.e the value of one variate increases with the increase of the value of the other variate

Case : II

When r = - 1 we say that the the correlation is perfectly negative

Case : III

When r = 0 we say that the both variables are uncorrelated

FINAL ANSWER

Hence the correct option is

d. perfect positive correlation

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