If the Correlation Between Variables X and Y Is 0

question 75

Multiple Choice

If the correlation between variables X and Y is 0.95, which of the following is true?

• A) X is a cause of Y
• B) Y is a cause of X
• C) low scores on X are accompanied by high scores on Y
• D) high scores on X are accompanied by high scores on Y
• E) a and d

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Definitions:

Earnings Per Share

A financial metric calculating the portion of a company's profit allocated to each outstanding share of common stock.

Preferred Stock Dividends

Payments made to preferred shareholders, typically fixed, that take priority over common stock dividends.

Cumulative Preferred Stock

A type of preferred stock where dividends must be paid, including any arrears, before any dividends can be distributed to common shareholders.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends, used for reinvestment in the business or to pay off debt.