What Is the Difference Between a Correlation Equal to -1

question 8

Multiple Choice

What is the difference between a correlation equal to -1 and a correlation equal to 0?

• A)A correlation equal to -1 means two alternatives are moving in the same direction, whereas a correlation of 0 means they are moving in opposite directions.
• B)A correlation equal to -1 means two alternatives are moving in the same direction, whereas a correlation of 0 means they are unrelated.
• C)A correlation equal to -1 means two alternatives are moving in opposite directions, whereas a correlation of 0 means they are moving in the same direction.
• D)A correlation equal to -1 means two alternatives are moving in opposite directions, whereas a correlation of 0 means they are unrelated.

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Definitions:

Z-score

An analytical indicator showing a value's position in relation to the average within a collection of values, expressed through its distance from the mean as measured in standard deviations.

Percentile

A value on a scale of one to a hundred that indicates the percent of a distribution that is equal to or below it.

Normal Curve

A bell-shaped curve that represents the distribution of many types of naturally occurring data; synonymous with Gaussian distribution.

Normal Random Variable

A variable that is distributed in a way that fits the normal (Gaussian) distribution, characterized by its mean and standard deviation.