Correlation Is a Statistical Measure of the Relationship Between a Series

question 13

Multiple Choice

Correlation is a statistical measure of the relationship between a series of numbers representing data. Which of the following statements about correlation is (are) correct?
I. Perfectly negatively correlated describes two negatively correlated stocks that have a correlation coefficient of -1.
II. Perfectly positively correlated describes two positively correlated stocks that have a correlation coefficient of 0.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

---

Definitions:

Dependent Variable

The variable in a study that is expected to change as a result of variations in the independent variable.

Administration

In research contexts, it often refers to the management, organization, and supervision of the processes and procedures involved in conducting a study.

Self-Reports

A method of data collection where individuals directly report their own behaviors, thoughts, or feelings, often through questionnaires or interviews.

Physiological Responses

The automatic reactions of the body to internal or external stimuli, such as changes in heart rate or hormone levels.