Which Correlation Coefficient Represents the Strongest Relationship Between Two Variables

question 4

Multiple Choice

Which correlation coefficient represents the strongest relationship between two variables?

• A)-.66
• B)0.00
• C)+.49
• D)+1.15

---

Definitions:

Quantity Demanded

The specific amount of a product that buyers are willing to purchase at a given price, holding all other factors constant.

Absolute Value

A mathematical function that describes the distance of a number on the number line from zero, disregarding its direction; always a non-negative value.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply, minimizing the bias in calculation by taking the average of the initial and final quantities and prices.

Price Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in its price, indicating how sensitive consumers are to price changes.