A Correlation Coefficient Close to -1 Implies

question 14

Multiple Choice

A correlation coefficient close to -1 implies:

• A) an inverse relationship
• B) a positive relationship
• C) no correlation
• D) a significant difference of means between two groups

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Definitions:

Cash Basis

A financial recording technique that only acknowledges income and expenditures upon the actual receipt or disbursement of cash.

Revenue Recognition

The accounting principle that dictates the specific conditions under which income is recognized by an entity.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transaction happens.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized and recorded in the financial statements.