Question 11(3 points)

If the correlation coefficient between two variables is 0.89, it means that the two variables will grow or decrease in the same direction.

Question 11 options:

1) True2) False

Question 12(3 points)

Correlation is not causation, but causation requires correlation to provide hints of association between variables.

Question 12 options:

1) True2) False

Question 13(3 points)

A large correlation means that either the correlation coefficient is closer to 1 or closer to -1.

Question 13 options:

1) True2) False

Question 14(3 points)

Dummy-coding is a process that converts a numeric variable into categorical.

Question 14 options:

1) True2) False

Question 15(3 points)

If themembershipvariable represents customer memberships as 1, 2 and 3, where 1 = no membership, 2 = gold membership, and 3 = elite membership, thismembershipvariable can directly be included in regression for analysis.

Question 15 options:

1) True2) False

Question 16(3 points)

A variable is named dummy variable because it does not have any effect in regression.

Question 16 options:

1) True2) False