When We Say That a Correlation Coefficient Is Statistically Significant

question 22

Multiple Choice

When we say that a correlation coefficient is statistically significant, we mean that

• A) we have reason to believe that it reflects an important relationship between variables.
• B) we have reason to believe that the relationship is positive.
• C) we have reason to believe that the true correlation in the population is not 0.0.
• D) we have strong support for a causal statement about the relationship.

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Definitions:

Marginal Utility

The additional satisfaction or benefit gained from consuming or using one more unit of a good or service.

Deserted Island

An uninhabited or sparsely populated island often used in economic theories and thought experiments to illustrate principles of survival, scarcity, and choice.

Consumer Preference

Consumer preference refers to the subjective tastes and choices of individuals regarding different goods and services, influenced by factors such as price, quality, and personal tastes.

Indifference Curves

Graphical representations in economics that show different combinations of two goods that provide equal satisfaction and utility to a consumer.