If the Coefficient of Correlation Between X and Y Is

question 126

Short Answer

If the coefficient of correlation between x and y is close to −1.0, which of the following statements is correct? $\begin{array}{|l|l|}\hline A&\text {There is a strong, positive linear relationship between \( \mathrm{x} \) and \( \mathrm{y} \), where there may or }\\&\text { may not be any causal relationship between \( x \) and \( y \).}\\\hline B&\text { There is a strong, negative linear relationship between \( \mathrm{x} \) and \( \mathrm{y} \), where there}\\&\text { must be a causal relationship between \( x \) and \( y \). }\\\hline C&\text {There is a weak, negative linear relationship between \( \mathrm{x} \) and \( \mathrm{y} \), where there may or }\\&\text {may not be any causal relationship between \( x \) and \( y \). }\\\hline D&\text {There is a strong negative linear relationship between \( \mathrm{x} \) and \( \mathrm{y} \), where there may or }\\&\text { may not be any causal relationship between \( x \) and \( y \).}\\\hline \end{array}$

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Definitions:

Collection Float

The time period between when a check is deposited and when the funds are made available.

Chequing Account

A bank account from which money can be withdrawn without notice, typically used for day-to-day spending and bill payments.

Deposit

A deposit refers to a sum of money placed into an account or given to another party as security for future transactions, often used in banking, leasing, and rental agreements.

Incremental Pre-tax Profits

Profits generated from a specific event or decision, calculated before taxes are deducted.