What is the difference between a correlation equal to -1 and a correlation equal to 0?
A)A correlation equal to -1 means two alternatives are moving in the same direction, whereas a correlation of 0 means they are moving in opposite directions.
B)A correlation equal to -1 means two alternatives are moving in the same direction, whereas a correlation of 0 means they are unrelated.
C)A correlation equal to -1 means two alternatives are moving in opposite directions, whereas a correlation of 0 means they are moving in the same direction.
D)A correlation equal to -1 means two alternatives are moving in opposite directions, whereas a correlation of 0 means they are unrelated.

Question

Quizplus · Accepted Answer

A correlation of -1 means that two variables are moving in opposite directions with a perfect negative linear relationship. For example, if the price of a good increases, the quantity demanded decreases. A correlation of 0 means that there is no linear relationship between the variables, meaning they are unrelated.

What Is the Difference Between a Correlation Equal to -1