In regression analysis, which of the following correlation coefficients represents the strongest relationship between the independent and dependent va... Accounting MCQs | Accounting MCQs

In regression analysis, which of the following correlation coefficients represents the strongest relationship between the independent and dependent variables?

1.03–.02 –.89.75Show Result

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Answer (C) is correct. Because the range of values is between –1.0 and 1.0, –.89 suggests a very strong inverse relationship between the independent and dependent variables. A value of –1.0 signifies a perfect inverse relationship, and a value of 1.0 signifies a perfect direct relationship.