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HomeCA FoundationquantitativeaptitudeCorrelation and Regression › If r = -1, the correlation is

If r = -1, the correlation is

AZero correlation
BPerfect negative
CWeak negative
DPerfect positive
Answer & Solution
Correct answer: B. Perfect negative
1. r ranges over [-1, +1] for linear correlation. 2. r = -1 implies all points lie on a line with negative slope. 3. This is called perfect negative correlation. 4. So the answer is 'perfect negative'. _Source: ICAI BoS Foundation Paper 3, Ch 17 'Correlation', p.5_
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