A Perfect Spearman Correlation of +1 or −1 Between Two

question 81

Multiple Choice

A perfect Spearman correlation of +1 or −1 between two variables indicates

• A)a perfect linear relationship between the two variables
• B)a perfect nondecreasing or nonincreasing function of the two variables.
• C)the Pearson correlation is 1
• D)the Pearson correlation is +1 or -1
• E)the two variables are not related.

---

Definitions:

Sales

The total revenue generated from selling goods or services.

Variable Expenses

Costs that vary in direct proportion with the level of production or sales volume, such as raw materials and sales commissions.

Traceable Fixed Expenses

Fixed costs that are directly associated with a specific department or product, and can be directly traced to it.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, determined by an investor's or company's risk tolerance.