In Correlation Analysis, the Strength of the Association Between the Variables

question 21

Multiple Choice

In correlation analysis, the strength of the association between the variables under investigation is determined by:

• A) how close the coefficient is to zero.
• B) how close the significance value is to 1.
• C) how close the coefficient is to ±1.
• D) whether the coefficient is positive or negative.

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Definitions:

Dividend Growing

A situation where a company consistently increases the amount of dividends paid to shareholders over time.

EPS Growth Rate

The annual percentage change in earnings per share, indicating the rate at which a company's profit per share is growing.

Rate of Return

An investment's growth or shrinkage in value throughout a particular phase, signified as a part of the original investment sum.

Current Stock Price

The present value per share at which a stock is trading in the stock market, reflecting the most recent agreement between buyers and sellers on its price.