How Many Attributes Does a Dichotomous Variable Have

question 20

Multiple Choice

How many attributes does a dichotomous variable have?

• A) 0
• B) 1
• C) 2
• D) 4

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Definitions:

Positive Correlation

A relationship between two variables where they move in the same direction, meaning as one variable increases, the other does too.

Risk

The potential for financial loss or gain in an investment due to various factors including market volatility.

Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).