Consider the following statements: 1. Two independents variable are always uncorrelated. 2. The coefficient of correlation between two variables X and Y is positive when X decreases then Y decreases Which of the above statements is/are correct?

Consider the following statements: 1. Two independents variable are always uncorrelated. 2. The coefficient of correlation between two variables X and Y is positive when X decreases then Y decreases Which of the above statements is/are correct? Correct Answer 1 and 2

Concept:

  • Two independent variables have coefficient of correlation 0, so they are always uncorrelated.
  • Positive coefficient means they both move in same direction, so if X decreases then Y also decreases.

 

So, both the statements are correct.

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