Which One of the Following Correlation Relationships Has the Potential

question 35

Multiple Choice

Which one of the following correlation relationships has the potential to completely eliminate risk?

• A)perfectly positive
• B)positive
• C)negative
• D)perfectly negative
• E)uncorrelated

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, where an increase in price for one leads to an increase in demand for the other.

Good Faith

A principle of honesty and sincerity of intention in one's actions, especially in contractual or negotiation contexts.

Implied Warranty of Merchantability

A legal presumption that a product will meet the reasonable expectations of quality and performance for goods of its kind.

Bicycle Merchant

A retailer specialized in the sale and service of bicycles and related accessories.