Which of the Following Statements Regarding Correlation Coefficients Is False

question 42

Multiple Choice

Which of the following statements regarding correlation coefficients is false?

• A)A correlation of + 0.75 indicates a stronger association than a correlation of + 0.50.
• B)A correlation of - 0.75 indicates a stronger association than a correlation of + 0.50.
• C)A correlation of - 0.75 indicates a stronger association than a correlation of - 0.50.
• D)A correlation of + 0.50 indicates a stronger association than a correlation of - 0.75.

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Definitions:

Capital Goods

Long-lasting goods purchased and used by businesses to produce goods and services and contribute to their output.

Investment

The allocation of resources, often money, into assets or projects with the expectation of generating profit or income.

Marginal Costs

The increase in the sum total of expenses that comes with the production of one additional unit of a product or service.

Resources Are Scarce

The fundamental economic problem that the available resources are limited compared to the unlimited wants and needs of people.