Which of the Following Is a Correct Interpretation of a Correlation

question 24

Multiple Choice

Which of the following is a correct interpretation of a correlation?

• A)"The correlation is −.85.This means students with lower verbal SAT scores tend to have lower GPAs as well."
• B)"The correlation between husbands' and wives' ages is −.85, so the correlation between wives' and husbands' ages is +.85."
• C)"The correlation is −.85.This means that as the distance of a golf putt goes up, the success rate of making the putt goes down.."
• D)All of the above.

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Definitions:

Initial Cost

The initial expenditure involved in starting a project, acquiring an asset, or initiating an investment.

Annual Cash Flows

The total amount of money being transferred into and out of a business, captured yearly.

Cross-over Rate

The Cross-over Rate is the point at which two different projects or investments have the same net present value or rate of return, used in capital budgeting to compare projects.

Initial Cash Outlay

The total amount of money required upfront to initiate a project, investment, or venture.