What Is Indicated by a Positive Value for a Correlation

question 25

Multiple Choice

What is indicated by a positive value for a correlation?

• A)Increases in X tend to be accompanied by increases in Y
• B)Increases in X tend to be accompanied by decreases in Y
• C)A much stronger relationship than if the correlation were negative
• D)A much weaker relationship than if the correlation were negative

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Definitions:

Payor Bank

The bank responsible for disbursing the funds indicated on a check.

Drawer

In the context of banking and checks, the individual or entity that writes and signs a check, directing a bank to pay the stated amount.

Drawee

The entity, often a bank, on which a check or draft is drawn and is responsible for paying the amount specified.

Depositary Bank

A financial institution that holds and manages the securities of a depositor, facilitating the exchange of securities and related transactions.