Which of the Following Statements Is an Accurate Interpretation of the Statistical

question 2

Multiple Choice

Which of the following statements is an accurate interpretation of the statistical result Pearson r = 0.70?

• A) 49% of the variability in one variable is explained by the variability in the other variable and vice versa.
• B) 70% of the participants had a high correlation between the two variables.
• C) 70% of the variability in one variable is explained by the variability in the other variable and vice versa.
• D) 30% of the variability in the stronger variable is explained by weaker variable.

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Definitions:

Understated

Describes an amount reported lower than it actually is, either in financial statements or any other reporting context.

Overstated

Refers to financial statements or figures being reported as more than their actual or true value.

Cost-to-retail Ratio

A method used to estimate the value of ending inventory and cost of goods sold by comparing the cost of goods available for sale to the retail price of the goods.

Declining Prices

A situation where the prices of goods or assets are decreasing over time, often leading to negative impacts on economies or markets.