If the Coefficient of Correlation Is 0

question 48

Multiple Choice

If the coefficient of correlation is 0.90, then the percentage of the variation in the dependent variable y that is explained by the variation in the independent variable x is:

• A) 90%
• B) 81%
• C) 0.90%
• D) 0.81%
• E) none of these

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Definitions:

Financial Condition

Refers to the current state of a company's financial health and stability, often assessed through analyzing balance sheets, income statements, and cash flow statements.

Par Value

The nominal or face value of a security or stock as stated by the issuing company, which might not reflect its market value.

Book Value

The value of an asset according to its balance sheet account balance, which is the cost of the asset minus any depreciation, amortization, or impairment costs made against the asset.

Book Value

The net value of a company's assets minus its liabilities, often used as an estimate of the company's worth.