If a Large Increase on One Variable Is Associated with a Large

question 5

Multiple Choice

If a large increase on one variable is associated with a large decrease on another variable

• A) the variables are highly positively correlated
• B) the correlation coefficient will be large and positive
• C) the correlation coefficient will be large and negative
• D) the correlation coefficient will be small and negative

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Definitions:

Assets

Resources owned by a company, regarded as having value and available to meet debts, commitments, or legacies.

Invest

The action of allocating resources, usually financial, with the expectation of achieving a profit or material result.

ESOPs

Employee Stock Ownership Plans; these provide company stocks to employees as part of a retirement plan or incentive program.

Tax Advantages

Financial benefits derived from certain investments or transactions that are treated favorably by tax laws, reducing tax liability.