Suppose you had a correlation coefficient on data from variables that had been truncated. In such a situation you might expect that the coefficient
A) understates the strength of the relationship
B) overstates the strength of the relationship
C) is an accurate reflection of the strength of the relationship
D) is not based on bivariate data.

Question

Quizplus · Accepted Answer

Truncation of data can lead to a reduction in the variability of the variables involved, which often results in a correlation coefficient that understates the true strength of the relationship between the variables. This is because truncation can remove extreme values that are essential for accurately assessing the relationship's strength.

Suppose You Had a Correlation Coefficient on Data from Variables