Exercise: Correlation Analysis

Question 1 of 1

1. Question

Correlation Analysis Exercise

Data File: Correlation.MTW

The stock broker reviewed the run charts pictured below of Company A and Company B, and based on the charts, now wants to quantify the strength of the linear relationship between the two companies. Use the “Correlation.MTW” data set to perform a correlation analysis between the two companies.

Question:

How would you characterize the relationship between the two companies’ stock prices?

1. No Linear Relationship
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2. Weak positive linear relationship
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3. Weak negative linear relationship
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4. Moderate positive linear relationship
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5. Moderate negative linear relationship
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6. Strong positive linear relationship
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7. Strong negative linear relationship
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Correct

Incorrect