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:

Net Income

The remaining income of a company once all taxes and costs are deducted from its total revenue.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing the wear and tear, or obsolescence of the asset.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made for expenses and revenues at the end of an accounting period.

Unadjusted Trial Balance

A listing of all accounts in the general ledger before any adjustments are made for the end of the reporting period.