Question

g If there is a very weak correlation between two variables, then the coefficient of determination must be

Answer 1

Answer:

very close to or equal to zero

Explanation:

Correlation coefficients refer to the degree of relationship between two exclusive variables.

A weak correlation means that a change in one variable does not significantly affect or cause any reaction with the second variable.

For example, if the prices of coffee and the price of ballons are observed in the same period and found to have a correlation of +0.00006. This means that there is little or no correlation, or relationship, between the two variables. Weak relationships are usually between -0.1 and +0.1

Correlation coefficients can also be positive or negative.

It is positive if both factors seem to move in the same direction. As an example, if the price of stocks for Apple and Microsoft change in the same direction in the same period, they are said to have a positive correlation coefficient.

On the flip side, the correlation coefficient will be negative if the price of one stock moves upwards whilst the other moves downwards. A perfect negative relationship would read -1.

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