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Correlation is defined as the degree of relationship between two or more variables. It is also called the simple correlation. The degree of relationship between two or more variables is called multi correlation. when two or more variables are said to be higjly correlated it means that they have a strong relationship such that a given rise or fall in one variable will lead to a direct change in the other variable or variables. good examples of highly correlated variables are price and quantity, wage rate and out put, tax and income.
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What is a true statementregarding the price elasticity of demand?
Price elasticity of demand is positively correlated with the existence of substitute goods.
How do you Rational and Adaptive expectations differ?
Adaptive expectations: assumes peoples' behaviour is totally correlated to past behaviour. History is the dominant factor in choice. Rational expectations: assumes people's behaviour is mostly correlated to acquisition and use of any information about the choice at hand. Rationality is the dominant factor in choice.
Are foreign markets correlated with US markets?
they didnt know if they woukd actually find anything new and they wanted to trade
Under what conditions mixed bundling preferable to pure bundling?
Mixed bundling is preferable to pure bundling when: - Demands are somewhat negatively correlated. - Marginal production costs are significant.
What is highly inelastic?
Highly unresponsive to changes in some endogenous factor.
Why is CDL cholesterol considered bad?
I believe you mean LDL. LDL is considered bad because it is highly correlated with the development of atherosclerosis.
What does a correlation -0.9 mean?
The two variables involved are highly but not perfectly correlated. When the value of one of them rises the other falls, and vice versa.
If two variables are highly correlated the correlation coefficient will be at or near zero-true or false?
If two variables are highly correlated, the Pearson correlation will be close to -1.0 or +1.0. A correlation of zero shows no relationship.
What are the following situational tests shown to be the most highly correlated with success at the police academy?
nothing
Is memory loss a sign of a stroke?
Memory loss is not correlated with signs or pointing to a stroke. Memory loss is highly correlated with Alheizmer's disease. Signs of a stroke are loss of muscles, usually half the body.
People's scores on the general intelligence factors are most highly correlated with their ability to solve problems?
novel problems
What does the word correlated mean?
Anything mutually related to one another.
What does it mean if two sets of data are correlated?
they are related, but one might not be causing the other
Are Gold and us dollar correlated?
if you mean in value? no they are no longer linked, they USE to be but no longer are, but they should still be.
What is correlated equilibrium of the prisoner's dilema game?
In PD the only correlated equilibrium is a Nash equilibrium. No strictly dominated strategy can be played in a correlated equilibrium
What are the shortcomings of correlation?
One shortcoming is the danger of assuming that because 2 variables are highly correlated then one must have caused the other. Correlations alone can never support this assumption.
What does the phrase correlation does not prove causation mean?
When things are correlated it means one thing predicts the other, but it doesn't mean it causes the other. I'll give an example. Golden anniversaries and hair loss are correlated. Now if you didnt know this phrase you would think long marriages causes hair loss, but its just that if your reach your golden anniversary it means youre probably very old, which accompanies hair loss. Correlated, not caused!
