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Two variables are said to be correlated :

  • A.The change in one variable results in a corresponding change in other variable
  • B.The change of the variables is in the opposite directions
  • C.The two variables are similar in nature
  • D.The two variables are dissimilar in nature

Answer: A

Two variables are correlated when a change in one variable results in a corresponding change in the other.

Correlation means the two vary together in a systematic way. The relation is positive when they move in the same direction (height and weight) and negative when they move in opposite directions (price and demand).

'Change in opposite directions' describes only negative correlation, not correlation in general. Whether variables are similar or dissimilar in nature has nothing to do with whether they are correlated.

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