What Does a Coefficient of Correlation of 0

question 116

Multiple Choice

What does a coefficient of correlation of 0.70 infer?

• A) Almost no correlation because 0.70 is close to 1.0
• B) 70% of the variation in one variable is explained by the other
• C) Coefficient of determination is 0.49
• D) Coefficient of nondetermination is 0.30

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Quick Assets

Highly liquid assets that can be quickly converted into cash without losing value, often including cash, marketable securities, and accounts receivable.

Current Assets

Items of value that are likely to be turned into cash, sold off, or used up within the span of one year or the length of the operating cycle, whichever period extends further.

Current Liabilities

Obligations that a company needs to pay off within one year or within its operating cycle, whichever is longer.