State Whether the Scatter Diagram Shows Strong Positive Correlation, Weak

question 122

Multiple Choice

State whether the scatter diagram shows strong positive correlation, weak positive correlation, strong negativecorrelation, weak negative correlation, or no correlation.
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• A)Weak negative correlation
• B)Strong negative correlation
• C)No correlation
• D)Weak positive correlation
• E)Strong positive correlation

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Definitions:

Discount Rate

The rate applied within discounted cash flow analysis for assessing the present worth of forthcoming cash flows.

Net Present Value

A method of evaluating investments by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Initial Investment

The initial amount of money spent to start a project, investment, or business, often including costs such as purchasing equipment, property, or technology.

Internal Rate of Return

The discount rate at which the net present value of all the cash flows from an investment or project equals zero, used as a gauge for its profitability.