If Variables Change in the Opposite Direction, What Type of Correlation

question 72

Multiple Choice

If variables change in the opposite direction, what type of correlation is this called?

• A)positive correlation
• B)negative correlation
• C)positive causation
• D)negative causation

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Definitions:

Common Stocks

Shares representing ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends and/or capital appreciation.

Retained Earnings

Represents the portion of a company's profits not distributed as dividends to shareholders but instead reinvested in the business.

Free Cash Flow

This is a financial performance measure that shows how much cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Management Bonuses

Additional compensation awarded to executives and managers, often tied to performance metrics such as company profitability or achievement of specific goals.