The Pearson Coefficient of Correlation R Equals 1 When There

question 45

Multiple Choice

The Pearson coefficient of correlation r equals 1 when there is/are no:

• A)explained variation.
• B)unexplained variation.
• C)y-intercept in the model.
• D)outliers.

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Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, generally depicted as upward sloping.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Nominal Interest Rate

The stated interest rate on a loan or investment, not adjusted for inflation.

Loanable Funds

The money available for borrowing; the market where savers supply funds for loans to borrowers.