- 3 Marks
Question
Explain the term Coefficient of Correlation in forecasting.
Answer
A coefficient of correlation is a statistical measure of the degree to which changes to the value of one variable predict changes to the value of another. In positively correlated variables, the values increase or decrease together. In negatively correlated variables, as one variable increases, the other decreases.
- Tags: Coefficient of Correlation, Forecasting, Regression
- Level: Level 1
- Topic: Forecasting
- Series: NOV 2018
- Uploader: Kwame Aikins