A zero correlation exists when there is no relationship between two variables.
Q. What type of relationship occurs when one variable decreases while the other variable increases?
What Is Positive Correlation? Positive correlation is a relationship between two variables in which both variables move in tandem—that is, in the same direction. A positive correlation exists when one variable decreases as the other variable decreases, or one variable increases while the other increases.
Table of Contents
- Q. What type of relationship occurs when one variable decreases while the other variable increases?
- Q. When we study correlation between only two variables it is called?
- Q. What are the assumptions and limitations of correlation?
- Q. What are the advantages and limitations of multiple correlation analysis?
- Q. What are the limitations of multiple regression analysis?
- Q. What are the problems of regression analysis?
- Q. What are the advantages and disadvantages of correlation?
- Q. What is meant by zero correlation?
Q. When we study correlation between only two variables it is called?
Simple correlation refers to the relationship between two variables i.e. presence of one variable is affecting the other variable. A simple correlation coefficient can range from -1 to +1. Answer verified by Toppr.
Q. What are the assumptions and limitations of correlation?
The assumptions are as follows: level of measurement, related pairs, absence of outliers, and linearity. Level of measurement refers to each variable. For a Pearson correlation, each variable should be continuous.
Q. What are the advantages and limitations of multiple correlation analysis?
Advantages- multiple correlation provides better prediction about a variable as compared to simple correlation because it is based on three or more variables. this also helps in making better decisions. Disadvantages- This method needs lot of calculation can can’t be easily understood by a layman.
Q. What are the limitations of multiple regression analysis?
Disadvantages of Multiple Regression Any disadvantage of using a multiple regression model usually comes down to the data being used. Two examples of this are using incomplete data and falsely concluding that a correlation is a causation.
Q. What are the problems of regression analysis?
Essential Concept 5: Problems in Regression Analysis
| Problem | Effect | Solution |
|---|---|---|
| Heteroskedasticity: variance of error term is not constant. Test using BP test BP = nR | F-test is unreliable. Standard error underestimated. t-stat overstated. | Robust standard errors Generalized least squares |
Q. What are the advantages and disadvantages of correlation?
It allows researchers to determine the strength and direction of a relationship so that later studies can narrow the findings down and, if possible, determine causation experimentally. Correlation research only uncovers a relationship; it cannot provide a conclusive reason for why there’s a relationship.
Q. What is meant by zero correlation?
Correlation is the measure of amount of linear relationship between two variables. If there is no linear relationship then it is called zero correlation and the two variables are said to be uncorrelated. Note that this can happen even when variables are related in some other non-linear fashion.
