A High Correlation Coefficient (Either Positive or Negative) Indicates That

question 160

Multiple Choice

A high correlation coefficient (either positive or negative) indicates that ​

• A)there is a high level of consistency between the two variables.
• B)the scores on the two variables are nearly identical. ​
• C)a change in one variable causes a change in the second variable. ​
• D)a third factor or variable is always responsible for the relationship between the two variables. ​

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Definitions:

Average Operating Assets

The average value of the assets used in the normal operating activities of a business over a specific period.

Return On Investment

A measure of the profitability of an investment, calculated as a percentage of the return divided by the cost of the investment.

Return On Investment

A metric to assess the effectiveness or profit generated by an investment in comparison to its expense.

Net Operating Income

Net operating income is the total profit of a company derived from its regular, core business operations, excluding deductions for interest and taxes.