Explain : Perfect negative correlation. - Vidyadip

Question

Explain : Perfect negative correlation.

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Answer

If all the points of the scatter diagram obtained by plotting n ordered pairs of observations of two correlated variables $x$ and $y,$ lie on one line which goes in downward direction from left to right, then we can say that there is perfect negative correlation between variable $x$ and $y.$
Here values of both the variables change in the opposite direction and increase or decrease in the same proportion.
This type of correlation can be expressed by the equation $y = a + bx(b < 0)$

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