Which of the Following Correlation Coefficients Indicates the Weakest Relationship

question 223

Multiple Choice

Which of the following correlation coefficients indicates the weakest relationship between the two variables being measured?

• A)+.95
• B)- .69
• C)+.01
• D)- 4.50

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Definitions:

Prepaid Interest

Interest starts accruing (building) at the beginning of each month and continues throughout the month; prepaid interest at the closing is the amount of mortgage interest due to cover the time from the closing date to when the first mortgage payment is due.

Down Payment

The upfront money applied to a purchase that is made using a loan (credit).

Mortgage

A loan specifically used to purchase real estate, where the property itself serves as collateral until the loan is repaid.

Closing Costs

Costs that are paid at closing that include origination fees, attorney fees, points, prepaid interest, transfer tax, and title insurance.