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Understanding Correlation in Data Analysis Quiz

#1

What does a correlation coefficient indicate?

The strength and direction of a linear relationship between two variables
Explanation

Measures the strength and direction of linear relationship

#2

What does a correlation coefficient of -1 indicate?

Perfect negative correlation
Explanation

Perfect negative correlation

#3

What does a correlation coefficient of 0 indicate?

No relationship between the variables
Explanation

Indicates no relationship

#4

Which of the following statements about correlation is false?

Correlation implies causation
Explanation

Correlation does not imply causation

#5

In data analysis, what does it mean if the correlation coefficient is close to 0?

There is a weak or no correlation
Explanation

Indicates weak or no correlation

#6

Which of the following correlation coefficients represents the strongest relationship?

-0.95
Explanation

Strongest negative linear relationship

#7

What is the range of a correlation coefficient?

-1 to 1
Explanation

Range from -1 (perfect negative) to 1 (perfect positive)

#8

Which of the following statements about correlation is true?

Correlation does not imply causation
Explanation

Correlation does not imply causation

#9

Which of the following is true about correlation?

Correlation can be used to make predictions about causation
Explanation

Can predict but does not imply causation

#10

What does it mean if the correlation coefficient is negative?

There is a strong negative relationship between the variables
Explanation

Indicates a strong negative relationship

#11

What does it mean if the correlation coefficient is exactly 1?

There is a perfect positive linear relationship
Explanation

Perfect positive linear relationship

#12

In which of the following cases should you be cautious about interpreting correlation?

When there is a clear causal relationship
Explanation

Cautious when there's a clear causal relationship

#13

What is the formula for calculating the correlation coefficient?

r = Σ(X - μX)(Y - μY) / (√(Σ(X - μX)^2) * √(Σ(Y - μY)^2))
Explanation

Formula for calculating correlation coefficient

#14

Which of the following statements is true about outliers in correlation analysis?

Outliers can inflate or deflate correlation coefficients
Explanation

Outliers can skew correlation coefficients

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