Given below are two statements :

Statement (I): Pearson's coefficient of correlation 'r' is a very useful measure of the strength and direction of the relationship between two nominal variables.

Statement (II): Pearson's coefficient of correlation 'r' always lies between 0 and 1.

In the light of the above statements, choose the most appropriate answer from the options given below:

1
Both Statement I and Statement II are correct
2
Both Statement I and Statement II are incorrect
3
Statement I is correct but Statement II is incorrect
4
Statement I is incorrect but Statement II is correct

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