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      Question

      Which of the following is correct regarding

      Correlation?
      A Correlation means two variables move together statistically. Correct Answer Incorrect Answer
      B Correlation is the measure of the strength of a relationship between variables. Correct Answer Incorrect Answer
      C Correlation applies to numerical data. Correct Answer Incorrect Answer
      D Correlation is measured by the p-value only. Correct Answer Incorrect Answer
      E Correlation requires large datasets. Correct Answer Incorrect Answer

      Solution

      The two variables are said to be correlated if a change in one causes a corresponding change in the other variable. For example, A change in the price of a commodity leads to a change in the quantity demanded. An increase in employment levels increases the output. When income increases, consumption increases as well.Β 

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