Which of the Following Statements Regarding the Correlation Coefficient Is

question 34

Multiple Choice

Which of the following statements regarding the correlation coefficient is false?

• A)The correlation coefficient is a value between -1 and 1.
• B)A high correlation coefficient tells us the data are linear.
• C)A correlation coefficient of 1 means that two variables are perfectly linearly related.
• D)A correlation coefficient of -1 means that as one variable increases, the other decreases.

---

Definitions:

Political Economy

An interdisciplinary branch that studies the relationship between individuals, societies, and governments, focusing on how economic theories affect policies and social issues.

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a lesser opportunity cost compared to its rivals.

Adam Smith

A Scottish economist and philosopher, known as the "father of modern economics" for his influential works on the nature and causes of the wealth of nations, promoting the idea of free market economies.