The Coefficient of Correlation

question 14

Multiple Choice

The coefficient of correlation

• A) takes on values anywhere from 0 to +1.
• B) takes on values anywhere from −1 to 0.
• C) takes on values anywhere from −1 to +1.
• D) takes on values of 0 or larger.

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Definitions:

Collection Float

The delay between when a check is deposited into a bank account and when the funds are available to the depositor, affecting cash flow.

Cheques

Cheques are financial instruments that order a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued.

Deposit

Money placed in a financial institution for safekeeping, which can earn interest and is often used to secure transactions.

Balance

The total amount of funds in an account or the difference between the total debits and credits in an account.