A researcher measures the relationship between education (in years) and investment gains (in thousands of dollars). Answer the following questions based on the results provided.
Education _______________________________ Investment Gains
14 ..................................................................8
12 .................................................................11
9 ..................................................................10
18 .................................................................14
(a) Compute the Pearson correlation coefficient.
(b) Multiply each investment gain by −1 (so that it represents investment losses instead of gains). Recalculate the correlation coefficient.
(c) True or false: Multiplying or dividing a negative constant by one set of scores (X or Y) changes the sign of the correlation only, while the strength of the correlation coefficient remains unchanged. Note: Use your answers in (a) and (b) to answer true or false.