When the Correlation in a Sample Is Found to Be

question 12

Multiple Choice

When the correlation in a sample is found to be significant, then it is assumed that

• A) the mean of Y differs from the mean of X in the population
• B) the mean of Y equals the mean of X in the population
• C) the regression of Y on X cannot be determined
• D) the correlation also exists in the population

---

Definitions:

Price Elasticity

A measure of the responsiveness of quantity demanded or supplied of a good to a change in its price.

Quantity Demanded

The quantity of a good that consumers are willing and able to purchase at a given price over a specified period of time.

CD Players

Devices used for playing audio CDs that were a popular technology for music playback before being gradually replaced by digital music players.

Elasticity

The measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price or income.