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:

Short Run

A period in economics during which some factors of production are fixed, limiting the ability of the economy or a firm to adjust to changes.

Real GDP

The market value of all final goods and services produced within a country in a given period, adjusted for inflation.

Recessions

Phases of momentary economic slump that lead to a reduction in trading and industrial activities, frequently identified by declining GDP in two successive quarters.

Aggregate Demand

The total demand for all goods and services in an economy at a given general price level and in a given time period.