If the Correlation Between Variable a and Variable B Is

question 113

Multiple Choice

If the correlation between variable A and variable B is -.5, then

• A) the relationship between A and B is random.
• B) increases in A are associated with decreases in B.
• C) we can use measurements of A to predict measurements of B perfectly.
• D) measured values of A are lower than measured values of B.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which does not necessarily reflect market value.

Stock Exchange

A regulated marketplace where securities, such as stocks and bonds, are bought and sold.

Private Corporation

A privately-owned company where ownership is either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately.

Authorized Shares

The total number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.