Correlation and Covariance Measure

question 18

Multiple Choice

Correlation and covariance measure:

• A) the strength of a linear relationship between two numerical variables
• B) the direction of a linear relationship between two numerical variables
• C) the strength and direction of a linear relationship between two numerical variables
• D) the strength and direction of a linear relationship between two categorical variables
• E) none of these choices

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Definitions:

Historical Demand

Past data regarding the consumption of products or services, used to predict future demand patterns and guide inventory and production planning.

July

The seventh month of the year in the Gregorian calendar, typically associated with mid-summer in the northern hemisphere.

Simple Exponential Smoothing

A time series forecasting method for univariate data that can be used to forecast data without any clear trend or seasonal patterns.

Observable Trend

A pattern, change, or movement in data that can be detected and assessed through analysis over a certain period.