The Pearson Correlation Coefficient (R) Assumes the Relationship Between Two

question 98

Multiple Choice

The Pearson correlation coefficient (r) assumes the relationship between two variables is ______.

• A) linear
• B) significant
• C) normal
• D) skewed

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Definitions:

Net Working Capital

The gap between what a company owns in the short term (current assets) and what it owes (current liabilities), revealing its financial stability in the near term.

Operating Cash Flow

Operating cash flow is a measure of the cash generated by a company's regular business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the short-term financial health of the company.

Capital Spending

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.