Correlation and Covariance Measure the

question 18

Multiple Choice

Correlation and covariance measure the

• A)strength of a linear relationship between two numerical variables.
• B)direction of a linear relationship between two numerical variables.
• C)strength and direction of a linear relationship between two numerical variables.
• D)strength and direction of a linear relationship between two categorical variables.

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Definitions:

Maturity Date

The specified date on which the final payment of a loan or financial instrument is due to be paid in full.

Cash Method

An accounting method where revenues and expenses are recognized at the time cash is received or paid out.

Record Income

The total income reported by an individual or entity for a specific period, usually for tax purposes.

Damaged House

A property that has suffered physical harm affecting its value or functionality, often through natural disasters or accidents.