If the Correlation Between Variables a and B Is +0

question 26

Multiple Choice

If the correlation between variables A and B is +0.7, then

• A) we can use measurements of A to make moderately accurate predictions of the value of B.
• B) the mean value of B is greater than the mean value of A.
• C) the mean value of A is greater than the mean value of B.
• D) as variable A increases, variable B tends to decrease.

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Definitions:

Economic Efficiency

A state in which resources are allocated in the most effective way possible to meet consumers' needs and wants, maximizing output without wasting any resources.

Capital

Resources, including financial assets, equipment, and buildings, used to produce goods and services.

Capital Goods

Long-lasting goods that are used in the production of other goods and services, such as machinery, buildings, and equipment.

Consumables

Items or products that are intended to be used up and replaced.