Dr Meeney Calculated Correlation Coefficients for Two Different Sets of Data

question 156

Multiple Choice

Dr. Meeney calculated correlation coefficients for two different sets of data. He found that data set X had a correlation coefficient of -0.75, and data set Y had a correlation coefficient of +0.58. Dr. Meeney can conclude that:

• A)set X has a stronger correlation than set Y
• B)set Y has a stronger correlation than set X.
• C)the data in set X were positively skewed.
• D)the data in set Y were negatively skewed.

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Definitions:

Amortization Expense

The methodical distribution of the expense of an intangible asset throughout its lifespan.

Patent

A Patent is a form of intellectual property that grants its holder exclusive rights to a new invention or process for a certain period of time.

Straight-Line Method

A depreciation technique that allocates an equal amount of the asset's cost to each year of its useful life.

Residual Value

The estimated value of an asset at the end of its useful life.