Using the Following Data, If Each of the Five Y

question 36

Multiple Choice

Using the following data, if each of the five Y scores were multiplied by 3.5, what would be the effect on the calculated r? $\begin{array}{llllll}\text { Subject } & X & Y & X^{2} & Y^{2} & X Y \\1 & 8 & 7 & 64 & 49 & 56 \\2 & 9 & 10 & 81 & 100 & 90 \\3 & 3 & 5 & 9 & 25 & 15 \\4 & 4 & 5 & 16 & 25 & 20 \\5 & \underline{1} & \underline{3} & \underline{1} & \underline{9} & \underline{3} \\\Sigma & 25 & 30 & 171 & 208 & 184\end{array}$

• A) It would remain the same.
• B) It would increase.
• C) It would decrease.
• D) It would depend on the shape of the distribution.

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Definitions:

Growth Rate

The rate at which a company's earnings or revenue increases over a specified period, typically expressed as a percentage.

Retained Earnings

The portion of a company's profit that is held back and not paid out as dividends, often used for reinvestment.

Dividend Payout Ratio

A financial metric that shows the proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of net income.

Sustainable Growth Rate

The highest rate at which a company can grow its earnings without needing to increase its financial leverage.