Which of the following are true regarding correlation?
I. Correlation is a number between 0 and 1.
II. Correlation is a measure of the strength of the linear relationship between two variables.
III. The higher the correlation, the higher the covariance.
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A. B. C. D.A
II is true. Because the correlation between two random variables X and Y is Cov(X,Y)/[(sigma_X)*(sigma_Y)], III is true. I is false, because correlation is a number that can take on values between -1 and +1, inclusive. A value of -1 indicates perfectly negative linear correlation.