If the Coefficient of Correlation Is −0

question 152

Multiple Choice

If the coefficient of correlation is −0.50, the percentage of the variation in the dependent variable y that is explained by the variation in the independent variable x is:

• A)− 50%.
• B)25%.
• C)50%.
• D)− 25%.

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Definitions:

Price

The amount of money required to purchase a good or service, reflecting its value in the marketplace.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit from the market.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.