Which Is True of Data Displayed in a Scatter Diagram

question 24

Multiple Choice

Which is true of data displayed in a scatter diagram?

• A) The looser the cluster and the more the cluster resembles a straight line, the stronger the relationship between the two variables.
• B) The tighter the cluster and the more the cluster resembles a curved line, the stronger the relationship between the two variables.
• C) The tighter the cluster and the more the cluster resembles a straight line, the stronger the relationship between the two variables.
• D) The looser the cluster and the more the cluster resembles a curved line, the stronger the relationship between the two variables.
• E) The tighter the cluster and the more the cluster resembles a straight line, the weaker the relationship between the two variables.

---

Definitions:

Indices

Benchmarks or measures that track the performance of a specific basket of stocks, bonds, or other investment vehicles.

Period

A span of time during which certain events or conditions exist or take place, often used in reference to financial reporting, investment intervals, or cycles.

Cross Hedging

The practice of hedging risk by using a contract that is correlated with, but not identical to, the actual underlying asset or liability.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type, often traded on futures exchanges.