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When Two Variables Are Strongly Correlated with Each Other, They

question 11

True/False

When two variables are strongly correlated with each other, they are also multicollinear.


Definitions:

Measure Of Liquidity

Indicators that demonstrate a company's ability to cover its short-term obligations with its liquid assets.

Debt-Equity Ratio

A gauge of how much a corporation leans on debt, by dividing all owed sums by the total equity of its stockholders.

Inventory Turnover

A financial ratio that shows how many times a company's inventory is sold and replaced over a period.

Mode

The most recurrent value in a data set.

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