What Does a Coefficient of Correlation of 0

question 55

Multiple Choice

What does a coefficient of correlation of 0.70 infer?

• A)There is almost no correlation because 0.70 is close to 1.0.
• B)Seventy percent of the variation in one variable is explained by the other variable.
• C)The coefficient of determination is 0.49.
• D)The coefficient of nondetermination is 0.30.

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Definitions:

Consolidated Income Statement

A financial statement that shows the combined income of a parent company and its subsidiaries, presenting the financial performance of the entire group.

Open Market

An economic system with no or minimal barriers to trade, where prices are determined by supply and demand forces without significant regulation.

Variable Interests

Interests in an entity that change with fluctuations in the entity's net asset value, income, or cash flows.