Which of the Following Symbolizes a Correlation Coefficient

question 24

Multiple Choice

Which of the following symbolizes a correlation coefficient?

• A) r
• B) r (in italics)
• C) r²
• D) r² (in italics)

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Definitions:

Substitution Effect

The financial concept where consumers opt for cheaper alternatives when prices increase or their income falls.

Income Effect

Adjustments in the income of a person or the economy and how these adjustments affect the need for certain goods or services.

Substitution Effect

The economic principle that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.

Income Effect

The impact of a change in an individual's income on their purchasing behavior, specifically how it affects the quantity of goods or services they buy.