If All the Values of One Variable Are About the Same

question 37

Multiple Choice

If all the values of one variable are about the same, and the values of a second variable are very different, then the correlation coefficient will approach

• A) 1.0
• B) zero
• C) -1.0
• D) either 1.0 or -1.0

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, also known as "net profit" or "net earnings."

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings paid out to shareholders in the form of dividends.

Capital Gains

Capital gains arise from the sale of an asset at a price higher than its purchase price, resulting in a profit.

Market Value

The current price at which an asset or a service can be bought or sold in an open market.