If There Is a Very Strong Correlation Between Two Variables

question 28

Multiple Choice

If there is a very strong correlation between two variables, then the coefficient of correlation must be _____.

• A) much larger than 1, if the correlation is positive
• B) much smaller than 1, if the correlation is negative
• C) either much larger than 1 or much smaller than 1
• D) None of the answers is correct.

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Definitions:

MBCA

Model Business Corporation Act, a model set of laws prepared by the Committee on Corporate Laws of the American Bar Association to guide states in the preparation of their corporate statutes.

Close Corporation

A type of business entity with a limited number of shareholders and restricted stock trading, often operated by family members or close associates.

Motion to Dismiss

A formal request to a court to dismiss a case on the grounds that it lacks basis for a lawsuit or is improperly filed.

Buy-and-Sell Agreement

A legally binding agreement determining what happens to a partner's share of a business in the event of that partner's death or departure.