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Which of the following statements are correct?
1. Correlation analysis helps in determining the relationship between two or more variables. It does not tell us anything about the cause and effect relationship.
2. The ratio of explained variation to the total variation is called the coefficient of correlation.
3. Pearsonian coefficient always assumes linear relationship, and is unduly effected by the extreme items.

A. 1 and 2

B. 1 and 3

C. 2 and 3

D. 1, 2 and 3

Answer: Option B


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