I If the Coefficient of Correlation Is 0

question 39

Multiple Choice

i. If the coefficient of correlation is 0.70, what is the coefficient of determination?
ii. If the value of r is -0.88, what does this indicate about the dependent variable as the independent
Variable increases?
iii. If the dependent variable is measured in hours, in what units is the standard error of estimate
Measured?

• A) 0.49; it decreases; hours.
• B) 0.49; it decreases; hours squared.
• C) 0.49; it increases; hours.
• D) 0.8367; it decreases; hours.
• E) 0.8367; it increases; hours squared.

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Definitions:

Long-run Average Cost

The average cost per unit of output over a long period, where all inputs can be adjusted by firms. This includes the cost of changing production levels and entering or exiting an industry.

Economies of Scale

Economies of scale refer to the reduced costs per unit that businesses experience as their operation size increases, typically resulting in lower costs per unit as the scale expands.

Output Q₁

A specific quantity of goods or services produced, denoted as Q₁ to signify a particular level or point of production output.

Output Q₃

Refers to the third quartile of output in a dataset, representing the dividing point between the highest 25% and the lower 75% of data.