When the Array of Points on a Scatter Plot Slopes

question 123

Multiple Choice

When the array of points on a scatter plot slopes from lower left to upper right, then

• A) the correlation is positive
• B) the correlation is negative
• C) there is no correlation
• D) no predictions can be made

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Definitions:

Contingent Liability

A potential financial obligation that may occur or become payable in the future, depending on the outcome of a specific event.

Reasonably Possible

A term used in accounting and law to describe a situation or outcome that, while not certain, is more than a remote possibility.

Estimable

Capable of being estimated or appraised, often used in finance and accounting to describe assets or liabilities that can be accurately assessed.

Installment Note

A debt instrument that requires regular payments, or installments, of principal and interest over a specified period.