Find the Value of the Linear Correlation Coefficient R A) 0708
B) 0

question 44

Multiple Choice

Find the value of the linear correlation coefficient r. The paired data below consist of the costs of advertising (in thousands of dollars) and the number of products sold (in thousands) . $$\begin{array} { l | r r r r r r r r } \text { Cost } & 9 & 2 & 3 & 4 & 2 & 5 & 9 & 10 \\\hline \text { Number } & 85 & 52 & 55 & 68 & 67 & 86 & 83 & 73\end{array}$$

• A) 0.708
• B) 0.246
• C) −0.071
• D) 0.235

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Definitions:

Potential Reward

The expected gain or benefit that may be obtained from an investment or action.

Risky Asset

An asset that carries a higher level of financial risk when compared to safer investments, often with the potential for higher returns.

Semi-Strong Efficiency

A form of market efficiency that asserts all public information is already reflected in stock prices, making it impossible to achieve consistently higher returns.

Historical Information

Past data or records that provide context or insight into an event, individual, or institution's background.