The Correlation Coefficient Between High School Grade Point Average (GPA)

question 30

Multiple Choice

The correlation coefficient between high school grade point average (GPA) and college GPA is
0) 560. For a student with a high school GPA that is 2.5 standard deviations above the mean, we
Would expect that student to have a college GPA that is ______ the mean.

• A) 2.5 SD above
• B) 1.4 SD above
• C) equal to
• D) 0.56 SD above

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Definitions:

Bad Debt Risk

The risk that money owed to a company by debtors will not be paid and thus become a bad debt.

Compensating Balance

A minimum account balance that a borrower must maintain as part of a condition for obtaining a loan.

Line of Credit

A flexible loan from a bank or financial institution that allows a borrower to draw and use funds up to a designated limit.

Field Warehouse

A storage facility that is used to store goods that are under the control of a financing company until the loan secured by those goods is repaid.