Which of the Following Statements Is NOT True of a Correlation

question 63

Multiple Choice

Which of the following statements is NOT true of a correlation?

• A)Correlations can range from -1.0 to +1.0.
• B)Negative correlations indicate relatively weak relationships.
• C)Correlations can indicate possible causal factors.
• D)Correlations can identify high-risk groups.
• E)Negative correlations indicate inverse relationships.

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Definitions:

Supply Curve

An illustrated chart that demonstrates how the supply quantity relates to a good's price.

Producer Surplus

The discrepancy between what sellers are prepared to accept for a commodity and the real payment they secure from selling it at the prevailing market price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell, typically upwards sloping.

Consumer Surplus

The difference between the sum total consumers are ready and capable of contributing towards a good or service and what they genuinely contribute.