If the Coefficient of Correlation Is 0

question 139

Short Answer

If the coefficient of correlation is 0.80, the percentage of the variation in y that is explained by the variation in x is: $\begin{array}{|l|l|}\hline\text { A. } & 80 \% \\\hline \text { B. } & 0.64 \% \\\hline \text { C. } & -80 \% \\\hline \text { D. } & 64 \% \\\hline\end{array}$

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Definitions:

Carrying Amount

The value of an asset or liability as reported on the balance sheet, reflecting its original cost minus any depreciation, amortization, or impairment charges.

Pre-Acquisition Equity

The equity interest in a company existing prior to its acquisition by another entity, used to determine the acquisition date fair value of the investee.

Dividend Declared

The official announcement by a company's board of directors that a dividend will be paid to shareholders, specifying the amount and payment date.

Goodwill

The intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting factors like reputation, brand, and customer relationships.