If the Coefficient of Correlation Is -0

question 167

True/False

If the coefficient of correlation is -0.7, then the percentage of the variation in y that is explained by the regression line is 70%.

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.

Total Debt

The sum of all financial obligations a company or individual owes to outside parties, which can include loans, bonds, mortgages, and other forms of debt.

Total Assets

The sum of all resources owned by an individual, company, or institution, valued in monetary terms.

Total Asset Turnover

An activity ratio that measures how efficiently the firm uses all of its assets to generate sales; a high ratio generally reflects good overall management.