Perfectly __________Correlated Series Move Exactly Together and Have a Correlation

question 9

Multiple Choice

Perfectly __________correlated series move exactly together and have a correlation coefficient of__________, while perfectly __________correlated series move exactly in opposite directions and have acorrelation coefficient of__________ .

• A) negatively; -1; positively; +1
• B) positively; +1; negatively; -1
• C) negatively; +1; positively; -1
• D) positively; -1; negatively; +1

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Definitions:

Snob Effect

A phenomenon where the demand for a certain good increases as the price increases because the good is perceived as being more desirable, exclusive, or prestigious.

Luxury Goods

High-quality, expensive items that are not essential but are desired for their status symbol and prestige.

Inelastic Demand

A situation where the demand for a product or service does not significantly change in response to a price change, indicating consumers’ willingness to buy regardless of price adjustments.

Log-Linear Form

A mathematical representation where variables are transformed using a logarithm, making multiplicative relationships appear linear.