Which of the Following Is Good Practice for Interpreting Correlations

question 80

Multiple Choice

Which of the following is good practice for interpreting correlations?

• A) finding a method that demonstrates the size of the correlation in a concrete manner
• B) using terms such as small, medium, and large to describe the effect size
• C) simply looking at the sign of the correlation and ignoring the actual value
• D) squaring the value, so that you can interpret the value more easily

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Definitions:

Idle Capacity

Unused production capacity or resources that are not being utilized to their full potential.

Special Discounted Price

A reduced price offered on a product or service, often to stimulate sales, clear inventory, or reward customers.

Opportunity Cost

The potential benefit that is foregone from not following the best alternative action or decision.

Price Reduction

A decrease in the listed price of goods or services, often used as a strategy to increase sales or competitive position.