Assume that annual income is related to level of education.Which of the following correlation coefficients would indicate the strongest relationship between the two variables?

Question

Quizplus · Accepted Answer

The correlation coefficient measures the strength and direction of the relationship between two variables. A value of +1 indicates a perfect positive relationship, while a value of -1 indicates a perfect negative relationship. A value of 0 indicates no relationship between the two variables. Therefore, a correlation coefficient of +0.65 indicates a strong positive relationship between annual income and level of education, which suggests that people with higher levels of education tend to earn higher incomes. A correlation coefficient of -0.35 indicates a moderate negative relationship, which suggests that people with lower levels of education tend to earn lower incomes. A correlation coefficient of -0.01 or +0.10 indicates a weak or very weak relationship and may not be considered statistically significant.

Assume That Annual Income Is Related to Level of Education