When Two Variables Have a Strong Positive Correlation, the Correlation

question 341

Multiple Choice

When two variables have a strong positive correlation, the correlation coefficient will be close to:

• A) 0.
• B) -1.
• C) +10.
• D) +1.

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Definitions:

Stock Investment

The process of buying shares of companies in the hope of making a profit from dividends or the sale of the shares at a higher price in the future.

Capital Acquisitions Ratio

A financial metric used to determine the total capital being used for capital expenditures by a company.

Operating Activities

Activities that relate directly to the business's primary operations, including cash flows from selling goods and providing services, which are part of the company's core business function.

External Financing

Funds raised from outside the company, including loans, equity investments, and bonds, to finance its operations or growth.