The Value of the Correlation Coefficient (R)________

question 63

Multiple Choice

The value of the correlation coefficient (r) ________.

• A)can be equal to the value of the coefficient of determination (r²)
• B)can never be equal to the value of the coefficient of determination (r²)
• C)can range from −2.0 to +2.0
• D)is generally larger than the value of the coefficient of determination

---

Definitions:

Cash Operating Costs

The expenses a company incures during its day-to-day operational activities, usually excluding non-cash costs like depreciation.

Current Salvage Value

The estimated value that an asset can be sold for at the end of its useful life in its present condition.

Profitability Index

A measure comparing the present value of future cash flows to the initial investment, used to assess the attractiveness of a project.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, important in assessing the value of investments.