Correlation analysis indicates:
Cause-and-effect relationship
The degree and direction of the relationship
Functional relationship
Trend over time
View Answer
Correct Answer: B — The degree and direction of the relationship
Explanation:
The correct answer is B: The degree and direction of the relationship.
Key Points:
- Correlation analysis is a statistical technique used to determine the degree and direction of a relationship between two variables.
- The correlation coefficient ranges between -1 and +1:
- Close to +1: strong positive relationship.
- Close to -1: strong negative relationship.
- Close to 0: no relationship.
- Correlation does not imply causation; it merely indicates that two variables are associated.
Additional Information:
- Cause-and-effect relationship: Incorrect — correlation does not establish causation. Causation requires further analysis such as experiments or regression analysis.
- Functional relationship: Incorrect — a functional relationship is a precise mathematical expression (e.g., y = f(x)); correlation only measures association.
- Trend over time: Incorrect — trends over time are analyzed using time series or trend analysis, not correlation.
