The Covariance Can Be Negative but the Coefficient of Correlation

question 147

True/False

The covariance can be negative but the coefficient of correlation cannot.

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Definitions:

Break-even Point

The point at which total revenue equals total costs and expenses, resulting in neither profit nor loss.

Dollar Sales

The total value of sales made by a business within a certain period, measured in dollars.

Selling Price

The amount of money for which a product or service is sold to the customer.

Net Operating Income

The total income from operations of a company before taxes and interest, calculated by subtracting operating expenses from gross profit.