Which of the Following Is True About Correlation Statistics

question 25

Multiple Choice

Which of the following is true about correlation statistics?

• A)A negative correlation is always undesirable.
• B)A strong positive correlation is always desirable.
• C)A weak correlation in one study might be more desirable than a strong correlation in another study if the two studies differ with regard to what variables are being correlated.
• D)A strong correlation is always more desirable than a weak correlation,

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of the product, like alcohol, tobacco, and gasoline.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium outcome is not achievable due to market failure or interventions.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to changes in price, income, or other factors.