What Does a Correlation Coefficient near +1 Mean

question 26

Multiple Choice

What does a correlation coefficient near +1 mean?

• A)Two variables are moving in the opposite direction.
• B)Two variables are moving in the same direction.
• C)Two variables are unrelated.
• D)One variable is not a good predictor of the other.

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Definitions:

Insurance Expense

The cost incurred by an entity for obtaining insurance coverage, typically recognized as an expense in the income statement.

Adjusting Entry

An accounting entry made at the end of a period to allocate income and expenditure to the appropriate years.

IFRS

International Financial Reporting Standards are a set of accounting guidelines that govern how companies prepare and present their financial statements internationally.

Income

The money received, especially on a regular basis, for work, through investments, or from business activities.