Which Value of R Indicates a Stronger Correlation Than 0

question 27

Multiple Choice

Which value of r indicates a stronger correlation than 0.40?

• A) -0.30
• B) -0.50
• C) +0.38
• D) 0

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Definitions:

Misery Index

An economic indicator calculated by adding the unemployment rate to the inflation rate, aiming to measure economic distress felt by everyday people.

Nominal Interest Rate

The rate of interest before adjustment for inflation, as opposed to the real interest rate, which is adjusted.

Expected Rate

The anticipated return or yield on an investment, saving account, or financial product, often used in planning and financial projections.

Inflation

The hike in the broad cost of goods and services, resulting in a reduction of purchasing leverage.