If the Correlation Between X and Y Is

question 6

Multiple Choice

If the correlation between X and Y is .60 and we observe a score of 1.0 ( Z units) on X , what score would be predicted for Y ?

• A)−1.2
• B)0
• C)0.6
• D)1.6

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Definitions:

Nominal Wages

The amount of money paid to an employee before adjustments for inflation; the face value of wages.

Real Wage

The purchasing power of wages, taking into account the effect of inflation on purchasing power.

Nominal Wage

The wage paid to employees in current dollars without adjustment for inflation, reflecting the actual amount of money received.

General Price Level

An index that shows the average price of goods and services across the economy over a period of time.