When a Correlation Coefficient Indicates a Strong Relationship Between Two

question 259

True/False

When a correlation coefficient indicates a strong relationship between two variables, one variable is causing the other.

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Definitions:

Straight-line Depreciation

A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Salvage Value

The estimated resale value of an asset after its useful life has ended.

Tax Rate

This is the proportion of income that is taken by the government as tax, impacting both individuals and businesses.

CCA Class

Refers to the classification system used for Capital Cost Allowance, determining the depreciation rate for tax purposes on different types of assets in Canada.