The Correlation Coefficient May Assume Any Value Between

question 22

Multiple Choice

The correlation coefficient may assume any value between

• A) 0 and 1.
• B) −∞ and ∞.
• C) 0 and 8.
• D) −1 and 1.
• E) −1 and 0.

---

Definitions:

Accounts Receivable Turnover

A financial metric that measures how effectively a company collects its receivables, calculated as net credit sales divided by the average accounts receivable.

Working Capital

A measure of a company's liquidity, operational efficiency, and short-term financial health, calculated as current assets minus current liabilities.

Current Ratio

A financial indicator used to assess whether a company can handle its obligations in the short term, calculated by the ratio of current assets to current liabilities.

Acid-Test Ratio

A liquidity metric that measures a company's ability to pay off its current liabilities with its quick assets without relying on inventory sales.