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Coefficient of correlation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Coefficient of correlation

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • August 31, 2021 at 7:48 pm #633711
    johnbriane
    Member
    • Topics: 170
    • Replies: 159
    • ☆☆☆

    Dear sir
    To identify The weakest relationship between two variables

    Should we look for the number which is close to 1 ?

    But why should it be close to 1 sir ( for it to be weak )

    September 1, 2021 at 7:11 am #633737
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54796
    • ☆☆☆☆☆

    A coefficient of +1 or -1 means that there is perfect correlation. The further it is from 1 (i.e. the closer to zero) then the weaker the correlation.

    September 1, 2021 at 8:25 am #633763
    johnbriane
    Member
    • Topics: 170
    • Replies: 159
    • ☆☆☆

    Oh ok sir
    And the more closer it is to 1 the relationship is stronger

    And the more closer it is to zero
    Then the relationship is weak

    September 1, 2021 at 6:15 pm #633827
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54796
    • ☆☆☆☆☆

    That is correct 🙂

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Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Coefficient of correlation’ is closed to new replies.

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