For a Given Set of Data the Covariance Between X

question 70

Multiple Choice

For a given set of data the covariance between X and Y is .80. The standard deviation of X is 2.0, and the standard deviation of Y is 3.0. The resulting correlation is closest to

• A) .00
• B) .15
• C) .80
• D) -.30

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Definitions:

Elasticity of Labor Supply

The responsiveness of workers to change their supply of labor (hours worked) in reaction to changes in wage rates.

Payroll Tax

Tariffs levied on employers and employees alike, generally calculated by a fraction of the workers' salaries.

Regressive

Describes a tax or policy that disproportionately affects lower-income individuals, typically by taking a larger percentage of their income.

Payroll Tax

Burdens placed on employers along with their employees, customarily determined as a percentage of the staff's wages.