What Is the Strength and Direction of the Correlation Between

question 41

Multiple Choice

What is the strength and direction of the correlation between years in school and IQ?

• A) weak negative correlation
• B) strong positive correlation
• C) strong negative correlation
• D) no correlation

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Definitions:

Expected Income

The amount of money an individual anticipates earning over a specified future period, often based on current income and future prospects.

Expected Value

Probability-weighted average of the payoffs associated with all possible outcomes.

Expected Returns

The average return an investor anticipates receiving from an investment, taking into account the probability of different outcomes.

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1, where 0 means impossibility and 1 indicates certainty.