Explain What Is Meant by a Correlation Between Two Variables,how

question 245

Essay

Explain what is meant by a correlation between two variables,how one would know if a correlation coefficient were weak or strong,and what constitutes a perfect relationship; and describe what is meant by positive,negative,and zero correlations and give an example of each.

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Definitions:

Dividend Per Share

The amount of dividend a company pays out to each shareholder for each share they own.

Retained Earnings

The portion of a company's profit that is held back and not paid out as dividends, used for reinvestment in the business or debt repayment.

Stock Split

A corporate action that increases the number of shares in a company by issuing more shares to current shareholders proportional to their ownership.

Market Value

The current value of an asset or company based on the price that it can be sold in the open market.