Which of the Following Statements Is NOT Correct Concerning the Correlation

question 90

Multiple Choice

Which of the following statements is NOT correct concerning the correlation coefficient?

• A) a value near zero indicates no relationship between the two variables
• B) high values indicate that the two variables have a cause and effect relationship
• C) the type of relationship between the two variables is described by whether the value is positive or negative
• D) the strength of the relationship between the two variables is described by the mathematical value

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Definitions:

Floating Charge

A debt security issued by a corporation in which assets of the corporation, such as stock-in-trade, are pledged as security. Until such time as default occurs, the corporation is free to dispose of the assets.

Creditor

An entity or person to whom money is owed by a debtor.

Inventories

The total amount of goods and materials held by a company for the purpose of sale or production.

Security

A financial asset, such as a stock or bond, that can be traded in the financial market.