The Pearson Coefficient of Correlation R Equals One When There

question 74

Multiple Choice

The Pearson coefficient of correlation r equals one when there is no:

• A)linear relationship between x and y.
• B)unexplained variation.
• C)y-intercept in the model.
• D)slope in the model.

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Definitions:

Accelerated Depreciation

A method of depreciation in which an asset loses value faster in the initial years of its useful life, with decreased amounts in later years.

Net Present Value

A method of evaluating investments by calculating the present value of future cash flows minus the initial investment cost, used to assess the profitability of an investment.

Cash Inflows

Money received by a business from its operational, investment, and financing activities.

Internal Rate

Often related to the internal rate of return (IRR), it's a metric used in financial analysis to estimate the profitability of potential investments.