ACCA MA · Chapter 2 · Question 7 of 12
Which value of the correlation coefficient (r) indicates perfect negative correlation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) -1
Explanation
r ranges from -1 to +1. A value of -1 means all points lie exactly on a straight line sloping downwards (perfect negative correlation), +1 means perfect positive correlation, and 0 means no linear correlation.
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