Calculating the Pearson Correlation Involves Calculating Eight Things: ΣX², (ΣX)²

question 8

Multiple Choice

Calculating the Pearson correlation involves calculating eight things: ΣX², (ΣX) ², ΣY², (ΣY) ², SS_X, SS_Y, SP_XY, and r. How many of these eight things can be a negative number?

• A) 1
• B) 2
• C) 3
• D) 4 or more

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.

Indirect Method

A way of preparing a cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Operating Activities

Transactions and events related to the primary operations of a business, such as revenue from sales and expenses from operations.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.