If the Correlation Between X and Y Is

question 6

Multiple Choice

If the correlation between X and Y is .60 and we observe a score of 1.0 ( Z units) on X , what score would be predicted for Y ?

• A)−1.2
• B)0
• C)0.6
• D)1.6

---

Definitions:

Economic Value

The significance of a good or service for individuals or society in terms of its ability to satisfy needs or wants.

25-year Annuity

A financial product that provides a series of payments made at equal intervals over 25 years.

Compounded Semi-annually

A method of computing interest where the interest is calculated and added to the principal twice a year.

Periodic Interest Rate

The interest rate applied to a loan or investment over a specific period of time, less frequently than annually.