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Question

Economics Question on Correlation and regression of two variables

Given below are two statements:
Statement I : Coefficient of correlation can not be less than - 1.
Statement II : Regression coefficient can not be less than - 1.
In the light of the above statements, choose the correct answer from the options given below:

A

Both Statement I and Statement II are true

B

Both Statement I and Statement II are false

C

Statement I is true but Statement II is false

D

Statement I is false but Statement II is true

Answer

Statement I is true but Statement II is false

Explanation

Solution

The correct option is(C): Statement I is true but Statement II is false