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Corelation coefficient

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Corelation coefficient

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • June 4, 2016 at 7:20 am #319248
    anu1234
    Member
    • Topics: 78
    • Replies: 65
    • ☆☆

    Why can’t correlation coefficient be greater than one ?

    June 4, 2016 at 10:04 am #319276
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    If all observations lie on a straight line, then that is perfectly linear and the coefficient will equal one. It cannot be any more linear than that 🙂

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