If One Calculates a Correlation of -1

question 1

Multiple Choice

If one calculates a correlation of -1.20,this coefficient indicates that a

• A) perfect negative relationship exists.
• B) moderately strong relationship exists.
• C) weak correlation exists.
• D) miscalculation has occurred.

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Definitions:

Average Operating Assets

A metric calculated as the average value of the assets involved in generating operating income over a specific period.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding deductions of interest and taxes.

Gross Margin

The difference between revenue and cost of goods sold, used to cover other expenses and profits.

Sales

The total amount of goods or services sold by a company within a specific period.