In Order for a Pearson's R to Reflect a Meaningful

question 26

Multiple Choice

In order for a Pearson's r to reflect a meaningful relationship, which of the following must be true?

• A)the relationship must be linear
• B)the relationship must be nonlinear
• C)the relationship must be inverse
• D)the relationship must be a positive one

---

Definitions:

Maximize Profits

An objective of firms where they seek to achieve the highest possible financial gain from their operations, often by optimizing production and sales strategies.

Supply Function

A mathematical equation or curve that shows the relationship between the price of a good and the quantity supplied.

Production Function

An economic model that describes the relationship between inputs used in production and the output of those goods or services.

Supply Function

A mathematical model that illustrates the relationship between the supply of a good or service and its price, holding other factors constant.