Can simple correlation coefficient measure any type of relationsh… - Vidyadip

Question

Can simple correlation coefficient measure any type of relationship?

✓

Answer

No, the simple correlation coefficient cannot measure any type of relationship. The simple correlation coefficient can measure only the direction and magnitude of linear relationship between the two variables. It cannot measure non-linear relationship like quadratic, trigonometric, cubic, etc. Therefore, in such cases, the purview of simple correlation coefficient falls short.
For example: The simple correlation coefficient may depict that $X$ and $Y$ are not correlated in the equation $X = Y^2$, hence it may be concluded that both the variables are independent, but such conclusion may be wrong.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Correlation→Correlation — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Give the properties of a good measure of dispersion.

Write short note on broken bar diagram.

A student obtained 60 marks in English, 75 in Hindi, 63 in Mathematics, 59 in Economics and 55 in Statistics. Calculate the Weighted Mean marks if the weights are respectively: 2, 1, 5, 5 and 3.

Draw PPC for an economy, if production possibilities are as under. Also find marginal opportunity cost.

Shirt (Millions)	0	1	2	3	4	5
Computer (Thousands)	15	14	12	9	5	0

In how many groups, different commodities have been divided while constructing Wholesale Price Index in India?

Complete the following table:

Output (Units)	Total Cost (₹)	Average Variable Cost (₹)	Marginal Cost (₹)
0	60	-	-
1	140	-	-
2	190	-	-
3	240	-	-
4	300	-	-

A consumer spends ₹60 on a good priced at ₹5 per unit. When price falls by 20 per cent, the consumer continues to spend ₹60 on the good. Calculate price elasticity of demand by percentage method.

Define median. Give its two merits.
OR
Write three merits of median.

Explain ‘large number of buyers and sellers’ feature of perfectly competitive market.

Which average is most appropriate for construction of an index number? Why is it not frequently used?