If a Diffusion Index for New Orders Went from 87

question 9

Multiple Choice

If a diffusion index for new orders went from 87 to 74 and then to 68,it would indicate ____ receipt of new orders and indicate a ____ in breadth and the possibility of a future ____ in the series.

• A) Limited, strengthening, decline
• B) Limited, weakening, increase
• C) Widespread, strengthening, increase
• D) Widespread, weakening, decline
• E) Widespread, weakening, increase

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Definitions:

Correlation Coefficient

A numerical measure that quantifies the strength and direction of a linear relationship between two variables, ranging from -1 to 1, where values close to 1 or -1 indicate a strong linear relationship.

Linear Relationship

A type of relationship between two variables where the change in one variable is consistently associated with a change in the other variable in a manner that can be depicted with a straight line.

Coefficient Of Correlation

The coefficient of correlation is a statistical measure that calculates the strength and direction of a linear relationship between two variables.

Coefficient Of Determination

A statistic that measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s).