A Correlation Coefficient Is A(n)

question 225

Multiple Choice

A correlation coefficient is a(n) :

• A) numerical indicator of the strength and direction of a relationship between two factors.
• B) independent variable that is used in a correlational study.
• C) numerical indicator of the statistical significance of the findings in a particular research study.
• D) index of the practical rather than the statistical significance of research findings.

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Definitions:

Prices

The amounts of money required to purchase goods and services, serving as signals in an economy to allocate resources.

Income

Payment for services or from investment returns, customarily coming in at steady intervals.

Preferences

In economics, it refers to the ordering of different alternatives by individuals based on their satisfaction, utility, or happiness.

Compensating Variation

A measure in economics of the amount of money one would need to reach their original utility level after a change in price or income.