The Direction (Positive or Negative)of a Correlation Is Indicated by

question 33

Multiple Choice

The direction (positive or negative) of a correlation is indicated by

• A)the absolute value of the correlation.
• B)numbers between 0.0 and 1.00.
• C)the sign of the coefficient.
• D)our ability to make predictions for the variables.

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Definitions:

Externality

An economic effect of a transaction that affects third parties who did not choose to be involved in the transaction.

Externality

An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer.

Market Exchange

The process through which goods, services, or assets are traded between buyers and sellers at a determined price.

Negative Externalities

Unintended and unfavourable outcomes of an activity or transaction that affect third-party stakeholders who did not choose to be involved in that activity.