A commodity trader finds a positive correlation between wheat prices and soybean prices, both measured as dollars per pound. Would you expect the correlation to be higher, lower, or the same if prices for wheat were in dollars per pound and prices for soybeans were in dollars per kilogram? (1 kilogram is 2.24 pounds.) Answer Correlation will be the same Correlation will be higher Correlation will be lower
Multiplying all the values by a scaling factor (like converting the units) makes no difference in the correlation value.
Correlation will be the same
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