What Happens When Two Variables Have a Negative Correlation

question 224

Multiple Choice

What happens when two variables have a negative correlation?

• A) They tend to move in opposite directions.
• B) They tend to move in the same direction.
• C) One variable will move while the other remains constant.
• D) The movement of the two variables is unpredictable.

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Definitions:

Managerial Accounting

The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations, in planning future operations, and in developing overall business strategies.

Strategic Decisions

Choice made by an organization's top management on long-term goals and policies, usually involving resources allocation and efforts to achieve competitive advantage.

Externally Imposed Benchmarks

Standards or measures of performance that are set by external organizations or bodies, which a company must meet or comply with.

Competitive Landscape

The dynamic external environment within which a business operates, characterized by the competition between existing firms, new entrants, and substitutes.