A Correlation Coefficient Shows That Smoking and Life Expectancy Are

question 70

Multiple Choice

A correlation coefficient shows that smoking and life expectancy are indeed related. As a result, a researcher could predict _____________ if the direction of the relationship is known.

• A) if a person smokes a lot of cigarettes, he or she will have less money monthly to buy gas
• B) the person's life expectancy will go up or down based on the number of cigarettes the person smokes daily
• C) if a person smokes cigarettes, he or she will eventually develop lung cancer
• D) a person's lungs will repair themselves and he or she will live a longer life

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Definitions:

Default Risk Premium

The additional amount a borrower must pay to compensate the lender for assuming the risk that the borrower may default on the loan.

Clean Price

The price of a bond excluding any accrued interest; the price the bond is actually quoted at in the financial markets.

Call Provision

A clause in a bond or other fixed-income security that allows the issuer to repay the bond before its maturity date.

Canada Yield Curve

A plot of the yields on Government of Canada notes and bonds relative to maturity.