Question
Easy
Which of the following statement is incorrect ?
1
Perfect correlation is ±1
2
Variance is the square of standard deviation.
3
r' is significant if it is less than six times of standard error.
4
Mean deviation is 4/5 of standard deviation.
Question Details
Time to Solve: 12
Exam: HTET
Level/Paper: Level 3
Chapter: Statistics for Economics
Topic: Measures of Dispersion
Correct Answer
Option C
Explanation
The correct option is 3: The statement "r' is significant if it is less than six times of standard error" is incorrect, and thus it is the correct answer to the question asking for the false statement. In statistics, particularly when testing the significance of a correlation coefficient ($r$), a common rule of thumb is used, known as the P.E. rule (Probable Error rule). According to this rule, a correlation…Read More
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