If the correlation coefficient is negative, this means the regression line can be used for prediction the calculation was done wrong there is a strong correlation between the variables the slope of the regression line is negative the test statistic, \( t \), can not be calculated there is no correlation between the variables
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The Deep Dive
A negative correlation coefficient indicates that as one variable increases, the other variable tends to decrease. This negative relationship is visually represented by a downward-sloping regression line, showing that the slope of the regression line is indeed negative. It's important to understand that this does not mean the calculation was wrong; it's just revealing an inverse relationship between the variables. In practical terms, negative correlations can be found in many areas, such as finance, where a rise in interest rates might correlate with a decrease in stock prices. Knowing this can help you make informed decisions, whether you're assessing risk in investments or understanding different phenomena in social science research!