A Correlation Coefficient of 0

question 2

Multiple Choice

A correlation coefficient of 0.9 between two variables can be interpreted as:

• A) strong positive linear relationship
• B) moderate positive linear relationship
• C) no linear relationship
• D) correlation coefficients cannot be greater than 0.5

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Definitions:

Economic Progress

The overall growth and improvement in an economy’s productivity, standards of living, and welfare over time.

Ad Valorem Tariffs

Tariffs based on a percentage of the value of the imported goods, used as a trade policy tool.

Quotas

Limits set by governments on the amount of a particular product that can be imported or exported during a specified time period, used to regulate trade.

World Trade Organization

An international organization that regulates international trade.