Which of the Following Represents the Weakest Correlation Between Two

question 120

Multiple Choice

Which of the following represents the weakest correlation between two variables?

• A) +0.23
• B) +0.01
• C) -0.79
• D) -0.97

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted over time for the investor's share of the investee's net profits or losses.

Undervalued Inventory

Inventory items that are reported at a value lower than their actual market value or cost of replacement.

Non-Controlling Interest

A minority shareholding in a company, representing an ownership stake that is less than 50% and does not allow for control over the company's operations.

Acquisition Differential

Refers to the difference between the purchase price of an asset and its fair market value at the time of acquisition.