- 1 Marks
Question
The scatter plot depicting the association that exists between the price of an item and the quantity supplied is such that all the points fall on a straight line and their movement is in a downward trend. This type of correlation exhibited in the graph is known as:
A. Perfect positive
B. Positive
C. Perfect negative
D. Negative
E. Zero
Answer
C
Explanation:
The correct answer is “C. Perfect negative.” A perfect negative correlation is depicted when all points fall on a straight line and move in a downward trend, meaning as one variable (price) increases, the other variable (quantity supplied) decreases at a constant rate.
Run-down:
In a perfect negative correlation, the relationship between two variables is completely inverse, and changes in one variable lead to predictable and opposite changes in the other. This is depicted by all points forming a straight line with a downward slope.
- Tags: Correlation, Negative Correlation, Scatter Plot
- Level: Level 1
- Topic: Statistics
- Series: NOV 2015
- Uploader: Dotse