Which of these is true regarding correlation?

The statement correctly identifying that correlation cannot be greater than one reflects the properties of the correlation coefficient, which ranges from -1 to 1. This coefficient measures the strength and direction of a linear relationship between two variables. A correlation of 1 indicates a perfect positive relationship, while -1 indicates a perfect negative relationship. A correlation of 0 signifies no linear relationship whatsoever. Therefore, it is impossible for a correlation coefficient to exceed 1 or fall below -1, making this statement true and fundamental to understanding how correlation is quantified in statistics.

In contrast, the other statements misrepresent the characteristics of correlation. It is indeed possible for the correlation to be zero, indicating that there is no linear correlation. The idea of correlation being infinite is also incorrect, as correlation is bound within the defined limits. Additionally, correlation can be positive, negative, or zero, meaning that generalizing correlation as negative is misleading. Understanding these boundaries is crucial for accurate data analysis and interpretation.