PRC-2 · Chapter 10 · Question 4 of 60
If the correlation coefficient (r) is 0.9, and each observation of variable X is multiplied by a constant factor of 100, what is the new value of 'r'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 0.9
Explanation
The correlation coefficient remains completely unchanged even if each observation of a variable is multiplied by a large constant.
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