Part 1 Please consider the following statement Then indicate

Part 1

Please consider the following statement. Then indicate whether it is true or false and explain your answer.

“If two variables have a correlation coefficient of negative 1, that means that they are is no correlation between them at all.”

Part 2

Please consider the following statement. Then indicate whether it is true or false and explain your answer.

“If the correlation coefficient between two variables is positive, then the coefficient estimate in a regression of one variable on the other will always be positive.”

Solution

1) False , it means that they are strongly correlated (lienarly related) but with negative slope

2) Yes, correlation direction is same as slope coefficient\'s sign