The Correlation Coefficient Is Generally Preferred to the Covariance Because

question 9

Multiple Choice

The correlation coefficient is generally preferred to the covariance because

• A)the correlation coefficient is a unit free measure of linear association.
• B)the covariance is bounded to fall between -1 and 1.
• C)the correlation coefficient must be positive.
• D)the covariance measures the quadratic relationship between two random variables.

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