If a Predictive Relationship Is Examined, the Variable That Is

question 5

True/False

If a predictive relationship is examined, the variable that is used to make the prediction is called the outcome variable, and the variable that is being predicted is called the predictor variable.

---

Definitions:

Covariance

A metric that quantifies the extent to which two variables change in correspondence with each other.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables change together, showing how one variable's movement is related to another's.

Standard Deviation

A statistical measurement that illustrates how spread out the values of a data set are around the mean, indicating the variability or volatility.

Expected Returns

The anticipated average return of an investment over a certain period, taking into account both the probability and the impact of all possible outcomes.