After Analyzing Her Data, Professor Nelson Discovers That a Correlation

question 8

Multiple Choice

After analyzing her data, Professor Nelson discovers that a correlation coefficient of +.75 exists between the amount of coffee a person drinks and the degree of stress experienced. Professor Nelson can safely conclude that:

• A) there is no relationship between stress and coffee consumption.
• B) stress causes people to drink coffee.
• C) as coffee consumption increases, stress also increases.
• D) drinking coffee produces stress.

---

Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenue, expenses, and net income.

Net Income

Represents the amount of earnings left over after all expenses, taxes, and costs have been deducted from total revenue, often considered a key indicator of a company's profitability.

Net Loss

A financial situation where a company's total expenses exceed its total revenues in a specific accounting period, leading to a decrease in equity.

Balance Sheet

A financial statement that shows the assets, liabilities, and equity of a company at a specific point in time, providing a snapshot of its financial condition.