Which of the Following Correlation Coefficients Represents the Variables with the Strongest

question 36

Multiple Choice

Which of the following correlation coefficients represents the variables with the strongest degree of relationship?​

• A)+0.99
• B)‑1.00
• C)+0.01
• D)‑0.59

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Definitions:

Covert Collusion

A secret agreement between firms to fix prices, limit production, or engage in other practices to restrict competition illegally.

Kinked Demand Curve Model

An economic model suggesting that price competition among firms may be rigid because a firm raising its price does not lead to competitors following suit, while price decreases are matched. This results in a demand curve with a kink.

Marginal Revenue Curve

A graphical representation that shows the change in total revenue resulting from selling one additional unit of a good or service.

Least-Cost Producer

A producer that can provide goods or services at the lowest possible cost, often due to advantages in technology, processes, or access to resources.