The Following Table Presents the Number of Police Officers (Per

question 20

Multiple Choice

The following table presents the number of police officers (per 100,000 citizens) and the annual murder rate (per 100,000 citizens) for a sample of cities. $$\begin{array} { c c } \hline \text { Police Officers (per 100,000) } & \text { Murders (per 100,000 per yr) } \\\hline 1252 & 37 \\1352 & 34 \\1271 & 41 \\1275 & 39 \\1472 & 35 \\1047 & 52 \\\hline\end{array}$$ The correlation coefficient between the per capita number of police officers and the per capita murder rates -0.899. Which of the following is the best interpretation of the correlation coefficient?

• A) The per capita murder rate tends to go down as the per capita number of police officers goes up.
• B) Higher murder rates make it more difficult for cities to hire police officers.
• C) The per capita number of police officers and the per capita murder rates are positively associated.
• D) More per capita police officers results in fewer per capita murders.

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Definitions:

Present Value

The present-day worth of future monetary amounts or cash flow series, determined by applying a specified rate of return.

Operating Cash Flows

The cash generated from a company’s normal business operations, indicating its capability to generate sufficient revenue to maintain and grow operations.

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The amount of income earned by a company before taxes are deducted, representing its profitability.

Incremental Cash Flows

Additional cash flows from a new project or investment, considered when evaluating the financial viability of that project.