If X and Y Are Two Variables with

question 39

True/False

If X and Y are two variables with , , and COV(X, Y) = 14.703, then the coefficient of correlation = 0.78.

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Definitions:

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often justifying government intervention.

Misallocated

Describes resources or efforts that are used inefficiently or inappropriately, leading to suboptimal outcomes.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price takers rather than makers.

Worthless Coin

A coin that has lost its value as currency, often due to hyperinflation or being phased out of circulation.