What Kind of Correlation Would One Expect to Find Between

question 58

Multiple Choice

What kind of correlation would one expect to find between the severity of snowstorms and rates of attendance at college classes?

• A) positive
• B) zero
• C) negative
• D) perfect negative

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Definitions:

Notional Principal

The term refers to the principal amount, or face value, upon which interest payments or financial derivatives are calculated, without the need for physical exchange of the principal sum.

T-bond Contract

A futures contract based on Treasury bonds, which are long-term government debt securities with a maturity of more than 10 years.

Positive Cost

Expenses that result in a benefit or return in the future, considered an investment rather than a loss.

Carry

The profit or loss from holding a position in a financial instrument over a period, considering factors like interest rates or dividends.