A Correlation Coefficient of 0

question 104

Multiple Choice

A correlation coefficient of 0.00 indicates that as the level of one variable increases, the level of the other variable

• A) increases.
• B) decreases.
• C) varies randomly.
• D) stays constant.

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Definitions:

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value, representing the income investors will receive.

Price Sensitivity

A measure of how the price of a product or service affects the demand for that product or service.

Par Value Bond

A bond that is selling for its original face value, as opposed to above (a premium) or below (a discount).