What Would the Scatter Plot Show for Data That Produce

question 56

Multiple Choice

What would the scatter plot show for data that produce a Pearson correlation of r = +.88?

• A) Points clustered close to a line that slopes up to the right
• B) Points clustered close to a line that slopes down to the right
• C) Points widely scattered around a line that slopes up to the right
• D) Points widely scattered around a line that slopes down to the right

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Definitions:

Mutual Fund

An investment vehicle in which investors contribute to a fund that uses their pooled money to invest in stocks, bonds, and other financial assets. The fund owns the assets, while the investors own shares of the fund.

Investor

A person or organization that invests money expecting to earn financial profits.

Bond

A security reflecting a relatively long-term debt relationship between the issuer (borrower) and the buyer (lender).

Financial Market

A marketplace where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives.