For Which of These Research Situations Would You MOST Likely

question 31

Multiple Choice

For which of these research situations would you MOST likely calculate a correlation coefficient?

• A) independent variable = type of car owned; dependent variable = money spent on gasoline per week
• B) independent variable = age; dependent variable = reaction time in milliseconds
• C) independent variable = city of residence; dependent variable = miles driven per week
• D) independent variable = college major; dependent variable = type of car owned

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Definitions:

Conversion Value

In convertible securities, the value of the security if it were converted into a different form, such as from a bond to stock.

Straight Bond Value

The value of a bond that pays a fixed interest rate and does not have any embedded options or features.

European Option

A type of options contract that can only be exercised at the expiration date, not before.

Expiration Date

The date on which a contractual agreement, option, or financial instrument becomes invalid or requires renewal.