If a Computed Pearson's Correlation Coefficient Is Statistically Significant at the .01

question 15

Multiple Choice

If a computed Pearson's correlation coefficient is statistically significant at the .01 level,

• A) an important relationship between the variables is assured.
• B) the two variables have a negligible relationship.
• C) it is highly likely that a relationship exists between the variables in the population.
• D) the correlation between the variables is positive.

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Definitions:

Required Rate of Return

This refers to the minimum expected yield by investors to compensate for the risk of the investment.

Financial Break-Even

The point at which total revenues equal total costs and expenses, leaving no net profit or loss.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business venture for the first time.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life.