The Strength of the Linear Relationship Between Two Numerical Variables

question 109

Multiple Choice

The strength of the linear relationship between two numerical variables may be measured by the

• A) slope.
• B) Y-intercept.
• C) coefficient of correlation.
• D) scatter diagram.

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Definitions:

Compounded Monthly

Interest calculation method where interest earned is added to the principal sum each month, increasing the total amount on which future interest is computed.

Time Value

A concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Compound Annual

This term, when incomplete, typically refers to the compound annual growth rate (CAGR), which is a measure of the mean annual growth rate of an investment over a specified time period longer than one year.