I the Purpose of Correlation Analysis Is to fiNd How

question 131

Multiple Choice

i. The purpose of correlation analysis is to find how strong the relationship is between two variables.
ii. A coefficient of correlation r close to 0 (say, 0.08) shows that the relationship between two
Variables is quite weak.
iii. The strength of the correlation between two variables depends on the sign of the coefficient of
Correlation.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Initial Public Offerings

The first sale of stock by a private company to the public, often to raise capital for expansion.

Volatile

Describing something prone to rapid and unpredictable changes, especially in the stock market or prices.

Risky

Associated with or exposed to a high level of uncertainty and the possibility of experiencing loss or harm.

Debt Financed

The use of borrowed funds to finance projects, acquisitions, or investments, often under terms of repayment with interest.