How are correlation coefficients affected when transformations are applied to the data?
- Correlation coefficients can change
- Correlation coefficients can decrease
- Correlation coefficients can increase
- Transformations do not affect correlation coefficients
Correlation coefficients can change when transformations are applied to the data. The exact effect depends on the transformation and the nature of the data. Transformations can linearize relationships, reduce skewness, or spread out data that is concentrated at a single point, all of which can change the correlation coefficient.
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