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Does zero correlation mean independence? - Economics

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Question

Does zero correlation mean independence?

Short Note

Solution

Correlation measures the linear relationship between the two variables. So, r being 0 implies the absence of a linear relationship. But they may be non-linearly related. Hence, if two variables are not correlated, it does not necessarily follow that they are independent.

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Types of Correlation
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Chapter 7: Correlation - Exercise [Page 105]

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NCERT Statistics for Economics [English]
Chapter 7 Correlation
Exercise | Q 11. | Page 105
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