All of the Following Statements Are TRUE About Finding Relationships

question 35

Multiple Choice

All of the following statements are TRUE about finding relationships in data EXCEPT:

• A)The covariance and correlation formulas are used to describe linear relationships between data.
• B)Covariance is a formula that can calculate the relationship between two variables, like age and dollars spent as well as the direction of the relationship.
• C)The correlation formula produces a value between -.1 and 1 that is called the correlation coefficient.
• D)The correlation coefficient is represented by the letter "r" in statistics and is a unitless value that describes the strength and direction of a relationship between two variables.

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Definitions:

Times Interest Earned

Times interest earned, a financial metric, measures a company's ability to meet its interest payments on outstanding debt with its before-tax income.

Income before Income Taxes

Income before income taxes is a financial measure that represents a company's earnings before tax expenses have been deducted.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge on the income statement.

Average Collection Period

The average number of days it takes for a company to receive payment from its customers for invoices issued.