If the Coefficient of Correlation Is

question 67

Multiple Choice

If the coefficient of correlation is .8, the percentage of variation in the dependent variable explained by the variation in the independent variable is

• A) .85%.
• B) 85%.
• C) .7225%.
• D) 72.25%.

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Definitions:

Investor

An individual or institution that allocates capital to investments with the expectation of receiving financial returns.

Materially Participate

Regular, continuous, and substantial involvement in business operations, determining if a tax loss is passive or nonpassive.

Passive Income

Earnings derived from a rental property, limited partnership, or other enterprises in which a person is not actively involved.

At-risk

Pertains to the amount of money invested in an activity that could be lost, used in tax contexts to limit deductions.