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An economic development researcher wants to understand the relationship between the average monthly expenditure on utilities for households in a particular middle-class neighborhood and each of the following household variables: family size, approximate location of the household within the neighborhood, and indication of whether those surveyed owned or rented their home, gross annual income of the first household wage earner, gross annual income of the second household wage earner (if applicable), size of the monthly home mortgage or rent payment, and the total indebtedness (excluding the value of a home mortgage) of the household.
The correlation for each pairing of variables are shown in the table below:
Table of correlations
-Which of the variables have essentially no linear relationship with the household's average monthly expenditure on utilities?
Accounts Receivable
Financial obligations of customers to a firm for items or services rendered but not yet compensated.
Face Value
Refers to the nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing its legal value.
Bond
An interest-bearing security that obligates the issuer to pay the bondholder a specified sum of money, generally at fixed intervals, and to repay the principal at maturity.
Maturity Date
The due date on which a loan or bond must be completely paid off, including principal and interest.
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