If the Coefficient of Correlation Is a Positive Value, Then

question 36

Multiple Choice

If the coefficient of correlation is a positive value, then the slope of the regression line _____.

• A) must also be positive
• B) can be either negative or positive
• C) can be 0
• D) None of the answers is correct.

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Definitions:

Luxury Good

A good for which demand increases more than proportionally as income rises, often seen as non-essential but desirable.

Price Elasticity Coefficient

A measure that quantifies the responsiveness of the quantity demanded of a good to a change in its price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, influencing pricing and marketing strategies.

Total Expenditures

The sum of all spending for consumption, investment, government outlays, and net exports in an economy.