Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Correlation

Question:

If $r_{XY}$ is positive, the relation between X and Y is of the type _______.

Options:

When Y increases X increases 

When Y decreases X increases

When Y increases X does not change

None of the above

Correct Answer:

When Y increases X increases 

Explanation:

The correct answer is Option1: When Y increases X increases

When the correlation coefficient \( r_{XY} \) is positive, it indicates a positive linear relationship between variables \( X \) and \( Y \).
Positive Correlation: A positive correlation means that as one variable (Y) increases, the other variable (X) tends to increase as well. Conversely, when Y decreases, X also tends to decrease. This relationship is described as a direct proportionality where changes in Y are associated with corresponding changes in X in the same direction.

Therefore, option (i) "When Y increases X increases" correctly describes the nature of the relationship between X and Y when the correlation coefficient \( r_{XY} \) is positive.