In Calculating the Pearson Correlation Coefficient, We Assume That

question 25

Multiple Choice

In calculating the Pearson correlation coefficient, we assume that:

• A) when the correlation coefficient is weak, there is a consistent, systematic relationship between the two variables.
• B) the relationship we are trying to measure is curvilinear.
• C) the variables we want to analyze have a binomially distributed population.
• D) the variables have been measured using interval- or ratio-scaled measures.
• E) when the correlation coefficient is strong and significant, the two variables are associated in a curvilinear fashion.

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Definitions:

Marginal Cost

is the change in total production cost that arises when the quantity produced is incremented by one unit, reflecting the cost of producing one additional unit of a good or service.

Marginal Cost Curve

The Marginal Cost Curve is a graphical representation showing the change in total cost that arises from producing one additional unit of a good or service.

Variable Input

An input in the production process that can be changed in the short run, such as labor and raw materials.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, assuming all other factors remain constant.