What Does a Correlation Coefficient near 0 Mean

question 24

Multiple Choice

What does a correlation coefficient near 0 mean?

• A)Two variables are moving in the opposite direction.
• B)Two variables are moving in the same direction.
• C)Two variables are unrelated.
• D)One variable is a good predictor of the other.

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Definitions:

Straight-Line Depreciation

A process for divvying up the expense of a tangible property across its useful duration in identical yearly amounts.

Net Present Value

A financial metric that calculates the value of a series of future cash flows in today's dollars, taking into account the time value of money.

Incremental Taxable Income

The additional amount of income that is subject to taxes, usually resulting from an increase in earnings or gains.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or property.