A Positive Correlation Indicates That

question 32

Multiple Choice

A positive correlation indicates that:

• A) as the value of one variable increases, one can predict that the value of the other will also increase.
• B) as the value of one variable increases, one can predict that the value of the other will decrease.
• C) little or no relationship exists between two variables.
• D) one variable causes the other.

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Definitions:

Units

Fundamental quantities used to measure, count, or quantify objects or events.

Diminishing Marginal Utility

See Law of Diminishing Marginal Utility.

Satisfaction

The contentment one feels when one's needs, desires, or expectations are fulfilled or surpassed.

Diminishing Marginal Utility

A principle stating that as a consumer consumes more of a good or service, the utility (satisfaction) gained from each additional unit decreases.