If the Point in the Upper Right Corner of This

question 34

Multiple Choice

If the point in the upper right corner of this scatterplot is removed from the data set, then what will happen to the slope of the line of best fit (b) and to the correlation (r) ?

• A) both will decrease.
• B) both will remain the same.
• C) both will increase.
• D) b will decrease, and r will increase.
• E) b will increase, and r will decrease.

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Definitions:

Cash Inflows

Money or equivalent value received by an entity, typically as a result of its business operations, investments, or financing activities.

Financial Statements

Records that outline the financial activities and condition of a business, government, or individual. These commonly include the balance sheet, income statement, and statement of cash flows.

Certificates of Deposit

Fixed-term financial instruments issued by banks that pay interest until maturity, when they can be redeemed for the original amount plus accrued interest.

Petty Cash

A small amount of cash on hand used for covering minor expenses in a business.