The Plus or Minus Sign (+/-) on the Correlation Coefficient

question 511

Multiple Choice

The plus or minus sign (+/-) on the correlation coefficient reflects

• A)the strength of the association
• B)the direction of the association
• C)the magnitude of the association
• D)the validity of the association

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Definitions:

Credit Balance

A situation where the total credits in an account exceed the total debits; often indicates amounts owed by a business.

Debit Balance

A financial statement condition where debits exceed the amount of credits in an account.

Unsecured Loan

A loan that doesn't require any collateral and is based primarily on the borrower's creditworthiness and ability to repay.

Beginning Inventory

The price of merchandise available for purchase at the commencement of a fiscal period.