"an increase of one unit in A is associated with exactly the same half-unit increase in B, regardless of the level of A. Even if the slope of the line in the figure were different (but positive), the correlation between the two variables would be 1 as long as all the points lie on that straight line."
sorry asking for such silly question, but i really have no idea on "an increase of one unit in A is associated with exactly the same half - unit increase in B"
i remember i saw this question in FinQuiz too
anyone can help ? thank you very much作者: yospaghetti 时间: 2011-7-11 19:10
A 1 2 3 4
B 0.5 1 1.5 2
an increase in A of 1 unit is associated with a 0.5 (one Half) increase in B.
CP作者: lucasg85 时间: 2011-7-11 19:10
thanks cpk, so is it for the 2nd one , the correlation would be 1 too?作者: mengxu 时间: 2011-7-11 19:10
if both series A and series B increase - correlation would be +1.
CP作者: flyinggirl 时间: 2011-7-11 19:10
so the rate of increase related to regression coefficient
we just know +1 is an absolute proportion increase
