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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › bpp kit 4a.1
sir can you explain how they have figured it out it is.098 I am not getting it
Firstly it is clear when looking at the two sets of observations that they are both increasing.
Therefore the correlation coefficient must be positive.
Secondly, the increases in each of the two variables each time is not exactly the same, but they are very similar. So although the coefficient is not 1, it is closer to 1 than it is to zero.
Therefore the answer from the choices available can only be +0.98.
