If the Absolute Value of Your Correlation Is 0

question 31

Multiple Choice

If the absolute value of your correlation is 0.9, your error in prediction will be ______.

• A)high
• B)low
• C)very low
• D)0

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Definitions:

Noncontrolling Interest

Noncontrolling interest is the portion of equity interest in a subsidiary not held by the parent company, reflecting the equity ownership of minority shareholders.

Dividends

Distributions of earnings from a corporation to its shareholders, typically in the form of profit sharing.

Noncontrolling Interest

A minority stake in a company that is not large enough to exercise control over the company, often reflected in the financial statements of a parent company that owns more than 50% but less than 100% of a subsidiary.

Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.