In Order for Pearson's R to Be Calculated

question 52

Multiple Choice

In order for Pearson's r to be calculated,

• A)both variables must be measured on a ratio scale
• B)the relationship must be a linear one
• C)at least one of the variables must have a restricted range
• D)the variables must be measured on at least an ordinal scale

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Definitions:

Total Rate Of Return

The overall return on an investment, including both capital gains and income, expressed as a percentage of the initial investment.

Capital Gain Yield

The increase in the price of an investment, calculated as the percentage difference between the current price and the purchase price.

Rate Of Total Return

A measure of the overall return on an investment, including both capital gains and income, expressed as a percentage of the initial investment.

Income Yield

The return on an investment expressed as a percentage of the investment’s cost.