If There Is a Very Weak Correlation Between Two Variables

question 38

Multiple Choice

If there is a very weak correlation between two variables, then the coefficient of determination must be

• A) much larger than 1, if the correlation is positive.
• B) much smaller than -1, if the correlation is negative.
• C) equal to one.
• D) closer or equal to zero.

---

Definitions:

Excess Profit

Profit earned by a firm that exceeds the normal profit level, often due to monopolistic power or market inefficiencies.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar, but not identical, allowing for competition on factors other than price.

Marginal Revenue

The additional income received from selling one more unit of a good or service.