A Correlation Coefficient of +1.73 Means That

question 31

Multiple Choice

A correlation coefficient of +1.73 means that:

• A) the relationship between the two variables is very strong.
• B) the relationship between the two variables is very weak.
• C) as one variable increases, so does the other.
• D) a calculation error has been made.

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Definitions:

Adjusting Entries

Financial records entered at the termination of an accounting period, aimed at allocating profits and outlays to the correct period.

Pretax Income

The income earned by a company before deducting taxes, representing the company's profitability after all expenses except taxes.

Accrued Expenses

Liabilities (payables) created when expenses are incurred, but cash will be paid in the future; created at end of period during the adjustment process to reflect the amount of expense incurred that the company will pay in the future.

Depreciation Expense

Distributing the expense of a physical asset throughout its lifespan.