CA Foundation · Quantitative Aptitude · Correlation and Regression
If the correlation coefficient between two variables X and Y is –0.85, which statement best describes their relationship?
The correlation coefficient –0.85 indicates a strong negative correlation. The negative sign means as one variable increases, the other decreases. The magnitude 0.85, being close to 1, represents strength of association, showing a strong relationship between X and Y.
- AX and Y move in the same direction with weak correlation
- BX and Y move in opposite directions with strong correlationCorrect
- CX and Y move in opposite directions with weak correlation
- DX and Y have no linear relationship
Explanation
A correlation coefficient of –0.85 is negative, indicating an inverse relationship where variables move in opposite directions. The magnitude 0.85 (close to 1) indicates a strong correlation, not weak. A coefficient near 0 would indicate weak correlation.
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