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If two variables x and y are perfectly positively correlated then in the scatter diagram every point (x, y) lies on

Question

If two variables x and y are perfectly positively correlated then in the scatter diagram every point (x, y) lies on

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Solution

a straight line. This line is known as the line of best fit or regression line. The line can be either upward sloping (positive correlation) or downward sloping (negative correlation). In the case of perfect positive correlation, all the points will lie on an upward sloping line.

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