If the Coefficient of Correlation Is 0

question 67

Multiple Choice

If the coefficient of correlation is 0.4, the percentage of variation in the dependent variable explained by the variation in the independent variable

• A)is 40%
• B)is 16%.
• C)is 4%
• D)can be any positive value

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Definitions:

Inflation

The speed at which the overall price level for goods and services increases, thereby diminishing buying power.

Floating Exchange Rates

A system in which currency values are allowed to fluctuate according to foreign exchange market mechanisms without direct intervention by the country’s government.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount loaned, which lenders charge borrowers.

Demand For Pounds

The desire or need for a given amount of a commodity, such as currency or weight, by consumers or businesses.