A Scatter Plot Shows a Set of Data Points That

question 41

Multiple Choice

A scatter plot shows a set of data points that are clustered close to a line that slopes down to the right. Which value would be closest to the correlation for these data?

• A) 0.80
• B) 0.40
• C) −0.40
• D) −0.80

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Definitions:

Correlations

A statistical measure that describes the extent to which two variables change together, indicating the strength and direction of their relationship.

Stock-Index Portfolios

Investment portfolios that aim to replicate the performance of a specific stock index, allowing investors to gain broad market exposure.

GDP Per Capita

An economic measure that calculates a country's economic output per person by dividing the GDP by the population.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage rate based on the investment's cost, its current market value, or its face value.