For Which of the Following Pearson Correlations Would the Data

question 4

Multiple Choice

For which of the following Pearson correlations would the data points be clustered most closely around a straight line?

• A)r = -0.10
• B)r = +0.40
• C)r = -0.70
• D)There is no relationship between the correlation and how close the points are to a straight line.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or output, such as rent, salaries, and loan payments.

Variable Cost

Costs that vary based on a company's operations, including outlays for materials needed for manufacturing or other production-related inputs.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing the additional value created by the firm.

Accounting Profit

Accounting profit is the financial gain calculated by subtracting total explicit costs from total revenue.