If the Correlation Coefficient Between Two Variables Is -1, It

question 4

True/False

If the correlation coefficient between two variables is -1, it means that the two variables are not related.

---

Definitions:

Net Income

The total earnings of a company after subtracting all expenses from revenues, also known as the bottom line.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net income or loss.

Common Stock

This represents units of ownership interest or equity in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Net Income

The sum total of profit a company achieves after removing the costs and tax payments from its income.