When Two Variables Have a Negative Correlation

question 124

Multiple Choice

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:

Regret Aversion

A psychological effect where individuals avoid making decisions that could result in action-based regret, affecting investment choices and risk-taking behaviors.

Short-Term Losses

Financial losses realized on the sale or exchange of an asset held for one year or less.

Making a Decision

The cognitive process of selecting a course of action from among multiple alternatives.