Which of the following statistical measures is the most suitable and simple measure of the strengthsimple measure of the strength and direction of the linear relationship between price and volume?

The correct answer is C. Correlation. Correlation measures both the strength and direction of a linear relationship between two variables, such as price and volume.

Data Analysis

Question

Options

AStandard deviation
BInterception
CCorrelation
DCovariance

How the community answered

(43 responses)

A
7% (3)
B
2% (1)
C
88% (38)
D
2% (1)

Explanation

Correlation measures both the strength and direction of a linear relationship between two variables, such as price and volume.

Topics

#Statistical Measures#Correlation Coefficient#Linear Relationships#Data Analysis Fundamentals

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