If the Correlation Between Variable a and Variable B Is

question 10

Multiple Choice

If the correlation between variable A and variable B is 0, then

• A) we can use measurements of A to predict measurements of B with high accuracy.
• B) increases in A are associated with decreases in B.
• C) the relationship between A and B is random.
• D) the mean value of A is equal to the mean value of B.

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Definitions:

Days' Sales in Inventory

A financial metric indicating the average number of days it takes for a company to turn its inventory into sales.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales or revenue.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a given period, indicating the efficiency of inventory management.