If the Coefficient of Correlation Between Machine Hours and Utilities

question 34

Multiple Choice

If the coefficient of correlation between machine hours and utilities cost is equal to 0.98 (r = 0.98) , the correlation is

• A)positive.
• B)negative.
• C)not related.
• D)none of the above.

---

Definitions:

Vertical Analysis

A technique for examining financial statements by presenting each item in the main categories of accounts (assets, liabilities, and equity) on a balance sheet as a fraction of the overall category.

Balance Sheet Data

Information related to the assets, liabilities, and stockholders' equity of a company as presented in its balance sheet at a specific date.

Current Ratio

An indicator of a business's capability to cover its obligations due in less than a year, determined by dividing the total of current assets by the total of current liabilities.

Marketable Securities

Financial instruments that can be easily converted to cash, such as stocks or bonds.