Which of the Following Statements Best Describes Correlation Analysis in a Simple

question 159

Multiple Choice

Which of the following statements best describes correlation analysis in a simple linear regression?

• A)Correlation analysis measures the strength of a relationship between two numerical variables.
• B)Correlation analysis measures the strength and direction of a linear relationship between two numerical variables.
• C)Correlation analysis measures the direction of a relationship between two numerical variables.
• D)Correlation analysis measures the strength of a relationship between two categorical variables.

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Definitions:

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.

Marginal Cost

The increase in total cost that arises from an extra unit of production.

Total Revenues

Total Revenues refer to the total receipts from sales of goods or services by a company before any expenses are subtracted.

Fixed Costs

These stay the same no matter how much output changes.