If Covariance Between Two Variables Is near 0, It Implies

question 40

Multiple Choice

If covariance between two variables is near 0, it implies that

• A)a positive relationship exists between the variables.
• B)the variables are not linearly related.
• C)the variables are negatively related.
• D)the variables are strongly related.

---

Definitions:

Not-for-profit Organization

An organization that operates for purposes other than generating profit, typically focusing on social, educational, or charitable objectives.

Endowment Contribution

A donation made to an organization, often a nonprofit or educational institution, with the stipulation that the principal amount is to be kept intact while the investment income generated is used for specific purposes.

Unrestricted Contribution

Donations made to a not-for-profit organization without specified restrictions, allowing the organization to use the funds for any purpose.

Operating Contribution

The portion of revenue that remains after variable expenses are subtracted, indicating how much contributes to covering fixed costs and generating profit.