Question

Which of the following stetements bset descibes correlation analysis in a simple linear regression
a. Correlation analysis measures the strenght of relationship between two categorical variables.
b. Correlation analysis measures the direction of relationship between two numerical variables.
c. Correlation analysis measures the strenght and direction of relationship between two numerical variables.
d. Correlation analysis measures the strenght of relationship between two numerical variables."

Answer 1

Correlation:
It is a statistical method that can be applied between the pairs of variables in order to check how the strongly they are related is termed as of correlation. Also the correlation measured based on the two given variables such as,
-Strength of the association
-Direction of the relationship
Strength of the association: It is clear that the correlation for the two variables x and y take values between -1 and +1.
Direction of the relationship: The direction of the relationship between the two variables is obtained by based on the sign of the correlation. Also, the signs may be positive or negative.
Identify the correct option.
The correct option is identified below as follows:
It is clear that the correlation measures the strength and direction of linear relationship between the numerical variables.
Correct option: Option C