Which of the Following Are Likely to Be Positively Correlated

question 27

Multiple Choice

Which of the following are likely to be positively correlated?

• A)stock prices of companies that manufacture computers and the cost of shares in companies that manufacture tires
• B)hurricane damage to homes in Florida and earthquake damage to homes in California
• C)sales of ice cream and cars on a hot summer day
• D)high unemployment and a federal budget deficit

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Definitions:

Payment Stream

A series of payments made over a period of time, often in the context of loans or annuities.

Production Units

Quantities of output, such as goods or services, produced within a specified timeframe.

Demand Decrease

A reduction in the quantity of a product or service that consumers are willing and able to purchase at a given price.

Compounded Quarterly

Interest calculated and added to the principal four times a year.