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Introduction to Statistics and Data Analysis4th EditionChris Olsen, Jay L. Devore, Roxy Peck 552 solutions What type of correlation occurs when both variables increase in the same direction?A positive correlation is a relationship between two variables that tend to move in the same direction. A positive correlation exists when one variable tends to decrease as the other variable decreases, or one variable tends to increase when the other increases.
When two variables move in the same direction the correlation coefficient will be?For example, when two stocks move in the same direction, the correlation coefficient is positive. Conversely, when two stocks move in opposite directions, the correlation coefficient is negative.
What happens when both variables in a correlation increases?If the two variables are positively correlated, an increasing linear line may be drawn on the scatterplot. If two variables are negatively correlated, a decreasing linear line may be draw. The stronger the relationship of the data points, the closer each data point will be to this line.
When both variables increases the correlation is positive or negative?The correlation coefficient is measured on a scale that varies from + 1 through 0 to – 1. Complete correlation between two variables is expressed by either + 1 or -1. When one variable increases as the other increases the correlation is positive; when one decreases as the other increases it is negative.
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