Imagine you are examining a correlation matrix and find that two variables have a correlation coefficient close to -1. What does this imply about the relationship between these two variables?

  • Their relationship is random
  • They are unrelated
  • They have a strong negative relationship
  • They have a weak positive relationship
A correlation coefficient close to -1 implies that the two variables have a strong negative relationship. This means that as one variable increases, the other decreases and vice versa.
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