The Direction of the Relationship Between Two Variables Is Given

question 18

Multiple Choice

The direction of the relationship between two variables is given by a correlation coefficient's ______; the strength of the relationship is given by the coefficient's _____.

• A)sign; sign
• B)sign; absolute value
• C)absolute value; absolute value
• D)absolute value; sign

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Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, representing the cost per unit of output.

Short Run

In economics, a period where at least one input, such as plant size or capital, is fixed and cannot be changed, contrasting with the long run where all inputs can vary.

Short Run

A period of time in economics during which at least one input is fixed, limiting the immediate capacity of businesses to adjust to market changes.

Losses

Financial reductions resulting from the operation of a business, particularly when expenses exceed revenues.