Categories

Dec 31, 2019 in Data Science

Q:

Which of the following indicates a fairly strong relationship between X and Y?

A. Correlation coefficient = 0.9

B. The p-value for the null hypothesis Beta coefficient =0 is 0.0001

C. The t-statistic for the null hypothesis Beta coefficient=0 is 30

D. None of these

1 Answer

Dec 31, 2019

Solution: A

Correlation between variables is 0.9. It signifies that the relationship between variables is fairly strong.

On the other hand, p-value and t-statistics merely measure how strong is the evidence that there is non zero association. Even a weak effect can be extremely significant given enough data.

 

Click here to read more about Loan/Mortgage
Click here to read more about Insurance

Related questions

Madanswer
Jun 7, 2019 in Data Handling using R
Sep 12 in QuickTest Professional (QTP)
May 27, 2019 in Data Handling
...