When Derek Did His Doctoral Dissertation, He Found a Correlation

question 182

Multiple Choice

When Derek did his doctoral dissertation, he found a correlation coefficient between his variables of -.92. This means

• A) there is no connection between his two variables.
• B) there is a strong connection between his variables - higher scores on one are associated with higher scores on the other.
• C) there is a strong connection between his variables - higher scores on one are associated with lower scores on the other.
• D) there is a connection between his variables but it is a very small one.

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Definitions:

Surplus Funds

Excess money or assets that remain after all expenses have been paid.

Maturing

The process by which a financial instrument reaches its due date and the principal is required to be repaid.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the principal.

Economic Equivalent

A financial concept that refers to the equivalence in value between different sums of money received or paid at different times, based on a specified interest rate.