What are the assumptions of correlation co-efficient?
I. There is non-linear relationship between two variables.
II. The two variables have cause and effect relationship.
III. Each variable is affected by a large number of independent causes.
IV. If the error is reduced to minimum, the co-efficient of correlation is more reliable.

I, II and III

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II, Ill and IV

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I, II and IV

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All of the above

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Solution

The correct option is B II, Ill and IV
For the calculation of correlation, it is assumed that there exists a cause and effect relationship between variables, every variable is affected by many factors or causes and correlation is more reliable if the error is less.

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The correct option is B II, Ill and IVFor the calculation of correlation, it is assumed that there exists a cause and effect relationship between variables, every variable is affected by many factors or causes and correlation is more reliable if the error is less.

The correct option is B II, Ill and IV
For the calculation of correlation, it is assumed that there exists a cause and effect relationship between variables, every variable is affected by many factors or causes and correlation is more reliable if the error is less.