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Back to 13.1 The Correlation Coefficient r

13.1 Exercise 7

Avg difficulty 2.5

Under a "scatter diagram" there is a notation that the coefficient of correlation is .10. What does this mean?

  1. plus and minus 10% from the means includes about 68% of the cases
  2. one-tenth of the variance of one variable is shared with the other variable
  3. one-tenth of one variable is caused by the other variable
  4. on a scale from -1 to +1, the degree of linear relationship between the two variables is +.10

OpenStax Introductory Business Statistics 2e, 13.1 The Correlation Coefficient r, exercise 7

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Adapted from Introductory Business Statistics 2e © 2023 Rice University. Licensed under CC BY 4.0. Source: Introductory Business Statistics 2e. Imported at revision 50ec917.