What Happens When a Correlation Is Nearer to 1

question 10

Multiple Choice

What happens when a correlation is nearer to 1.00 (plus or minus) ?

• A)The relationship between the variables becomes stronger.
• B)The relationship between the variables remains constant in terms of its strength.
• C)The variables become interdependent of each other.
• D)The relationship between the variables is terminated.

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Definitions:

Net Income

The total profit (or loss) after all expenses, including taxes, have been deducted from revenue; also called net earnings.

Double-Entry Bookkeeping

A system of recording and classifying business transactions that maintains the balance of the accounting equation.