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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

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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.