I a Coefficient of Correlation R Close to 0 (Say

question 10

Multiple Choice

i. A coefficient of correlation r close to 0 (say, 0.08) shows that the relationship between two variables is quite weak.
ii. If the coefficient of correlation is 0.68, the coefficient of determination is 0.4624.
iii. The standard error of estimate measures the accuracy of our prediction.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Independent Directors

Board members who do not have a material or pecuniary relationship with the company or its related parties, except for board compensation, ensuring unbiased and objective decisions.

Audit Committees

A subgroup of a company's board of directors responsible for overseeing financial reporting and disclosure.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit.