The Analysis of Two Variables Indicates a Correlation with R

question 7

Multiple Choice

The analysis of two variables indicates a correlation with r = -0.85. Calculate, to 1 decimal place, the percentage of variation in the independent variable that is not accounted for by the dependent variable.

• A) 85.0%
• B) 72.3%
• C) 56.3%
• D) 27.8%

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Definitions:

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Payoff

The potential gain or loss that will result from a specific investment or decision.

Ounce

A unit of weight commonly used in the United States and the United Kingdom, equal to one-sixteenth of a pound or approximately 28.35 grams.

Futures Contract

A standardized legal agreement to buy or sell an asset at a predetermined price at a specified time in the future.