If the Correlation Coefficient (R)= 1.00,then

question 39

Multiple Choice

If the correlation coefficient (r) = 1.00,then

• A)the Y-intercept (b₀)must equal 0.
• B)the explained variation equals the unexplained variation.
• C)there is no unexplained variation.
• D)there is no explained variation.

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Definitions:

Foreign Goods

Products and services that are produced abroad and imported for domestic consumption.

Country A's Exports

Goods and services produced domestically in Country A and sold to buyers in other countries.

Net Exports

The value of a country's total exports minus the value of its total imports; it's a measure used to calculate the trade balance of a country.

Net Capital Outflow

The difference between the domestic savings of a country and its domestic investments, representing the amount of capital that leaves a country to be invested abroad.