If the Absolute Value of the Correlation Is 0

question 42

Multiple Choice

If the absolute value of the correlation is 0.9,the error in prediction will be ______.

• A)high
• B)low
• C)very low
• D)0

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Definitions:

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, allowing the interest to earn interest each month.

Ordinary Perpetuity

A perpetuity in which the payments are at the end of each payment interval.

Ordinary Annuity

A sequence of equal payments made at equal intervals of time, with the first payment occurring at the end of the period.