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A correlation where all points fall in the trend line.*No correlationLow CorrelationHigh correlationPerfect CorrelationNone of the above

Question

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Solution

Understanding Correlation

Correlation refers to the relationship between two variables and how they change with respect to each other. The strength and direction of this relationship are often measured on a scale from -1 to +1.

  1. No Correlation: This indicates that changes in one variable do not predict changes in another variable at all. The scatter plot of such data would show no discernible trend.

  2. Low Correlation: Here, the variables show some relationship, but it’s weak. Points would be spread out, suggesting some connection, but not a strong one.

  3. High Correlation: This demonstrates a strong relationship where the points are somewhat close to a trend line but not perfectly aligned.

  4. Perfect Correlation: This means every point falls exactly on a straight line, showing a definitive linear relationship between the two variables. The correlation coefficient is exactly +1 or -1.

Final Answer

The correct answer to the question is Perfect Correlation, where all points fall perfectly on the trend line.

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