What Is Indicated by a Pearson Correlation of R =

question 17

Multiple Choice

What is indicated by a Pearson correlation of r = +1.00 between X and Y?

• A)each time X increases, there is a perfectly predictable increase in Y
• B)every change in X causes a change in Y
• C)every increase in X causes an increase in Y
• D)All of the other 3 choices occur with a correlation of +1.00.

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Definitions:

Subsidize

The act of providing financial assistance to individuals, businesses, or industries to support or promote economic activities.

Basic Research

Fundamental scientific research aimed at increasing understanding and knowledge, without specific immediate commercial applications.

Free-Rider Problem

A situation in which individuals consume more than their fair share of a public resource, or shoulder less than a fair share of the costs of its production, because they are not charged for their usage.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use does not reduce availability to others.