Which statement about correlation is true?
I. Regression based on data that are summary statistics tends to result in a higher correlation.
II. If $ r^{2}=0.95 $, the response variable increases as the explanatory variable increases.
III. An outlier always decreases the correlation.
A) I only
B) II only
C) none
D) III only
E) I, II, and III

Question

Which statement about correlation is true?
I. Regression based on data that are summary statistics tends to result in a higher correlation. 
II. If $ r^{2}=0.95 $, the response variable increases as the explanatory variable increases. 
III. An outlier always decreases the correlation.
A) I only
B) II only
C) none
D) III only
E) I, II, and III

Quizplus · Accepted Answer

I. Regression based on data that are summary statistics tends to result in a higher correlation. This is true because summary statistics are less likely to contain outliers, which can decrease the correlation.II. If $ r^{2}=0.95 $, the response variable increases as the explanatory variable increases. This is true because $ r^{2} $ is the square of the correlation coefficient, which measures the strength of the linear relationship between the two variables. A value of $ r^{2}=0.95 $ indicates a strong positive correlation, which means that the response variable increases as the explanatory variable increases.III. An outlier always decreases the correlation. This is not true. An outlier can either increase or decrease the correlation, depending on its location.

Which Statement About Correlation Is True? I r2=0.95 r^{2}=0.95 r2=0.95 , the Response Variable Increases as the Explanatory Variable Increases

Which Statement About Correlation Is True?
I $r^{2}=0.95$ , the Response Variable Increases as the Explanatory Variable Increases