True or False: The correlation coefficient can be greater than one.

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Prepare for the University of Central Florida GEB4522 Data Driven Decision Making Exam 2. Utilize interactive quizzes, flashcards, and detailed explanations to excel in your test. Enhance your decision-making skills and ace the exam!

The correct answer is that the correlation coefficient cannot be greater than one. The correlation coefficient, often represented as "r," is a statistical measure that describes the strength and direction of a relationship between two variables. It ranges from -1 to 1, where -1 indicates a perfect negative correlation, 0 indicates no correlation, and 1 indicates a perfect positive correlation.

Since the value of the correlation coefficient is confined within this range, it cannot exceed 1 or -1 under any circumstances. Values beyond these limits would not have a valid interpretation in the context of correlation, as they would imply a relationship that cannot exist within the statistical framework.

Understanding this fundamental characteristic of correlation is essential for interpreting data accurately in the context of data-driven decision-making.