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Chapter 28: Problem 9

What does it mean when a correlation coefficient is negative? Can you think of examples?

Short Answer

Expert verified
A negative correlation coefficient indicates an inverse relationship between two variables; as one variable increases, the other decreases. An example could be the relationship between outdoor temperature and sales of winter coats where sales increase as temperature decreases.

Step by step solution

01

Defining the correlation coefficient

The correlation coefficient is a statistical measure that calculates the strength of the relationship between the relative movements of two variables. The values range between -1.0 and 1.0, where 1 indicates a strong positive relationship, -1 indicates a strong negative relationship, and 0 indicates no relationship at all.
02

Explaining negative correlation

When the correlation coefficient is negative, it means there is an inverse relationship between the two variables; when one variable increases, the other decreases. The higher the absolute value of the negative correlation coefficient, the stronger the negative relationship.
03

Providing Examples

Examples of situations with negative correlation could include: 1) The relationship between outdoor temperature and sales of winter coats, as the temperature decreases, sales of winter coats typically increase. 2) The relationship between the amount of studying and the number of mistakes in an exam, as the amount of studying increases, the number of mistakes typically decreases.

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