Which Statement Is Not Correct About the Partial Correlation Coefficient

question 59

Multiple Choice

Which statement is not correct about the partial correlation coefficient?

• A)Partial correlations can be helpful for detecting spurious relationships.
• B)The partial correlation coefficient is generally viewed as more important than the part correlation coefficient.
• C)The partial correlation coefficient represents the correlation between Y and X when the linear effects of the other independent variables have been removed from X but not from Y.
• D)The partial correlation coefficient can be calculated by a knowledge of the simple correlations alone.

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Definitions:

Total Cost Curve

A graphic representation showing how total cost changes with changes in the level of output or production.

Output

The amount of goods or services produced by a company, industry, or economy in a given period.

Isoquant

A curve representing all the combinations of inputs that result in the production of a certain level of output, used in the study of production theory.

Capital

The wealth, whether in money or other assets, owned or employed in business by an individual, firm, or country.