A) 0873
B) 0

question 154

Multiple Choice

$$\begin{array}{l}\text { For the data below, determine the value of the linear correlation coefficient } r \text { between } y \text { and } x ^ { 2 } \text {. }\\\begin{array} { r | r r r r r } \boldsymbol { x } & 1.2 & 2.7 & 4.4 & 6.6 & 9.5 \\\hline \boldsymbol { y } & 1.6 & 4.7 & 9.9 & 24.5 & 39.0\end{array}\end{array}$$

• A) 0.873
• B) 0.913
• C) 0.985
• D) 0.990

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Definitions:

Expected Cash Flows

The projected cash receipts and payments a business expects over a certain period, considering various scenarios.

Abandonment Option

In project management and investment, the option to cease further investment or project development if returns do not meet a certain threshold.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price within a specified time.

Real Option

A real option refers to the choice or flexibility a company has to make business decisions, such as expanding, deferring, or abandoning a project based on changes in market conditions.