If Two Variables Are Perfectly Correlated,then ____

question 121

Multiple Choice

If two variables are perfectly correlated,then ____.

• A)all data points fall on the regression line
• B)the average error in predicting scores is very large
• C)the standard error of estimate is very large
• D)an increase in x leads to no change in Y

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Definitions:

Price Weighted Index

A stock market index in which each company's stock influences the index in proportion to its price per share.

Adjustable Rate Mortgage

A type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan according to market conditions.

Fixed Rate Mortgage

A mortgage in which the interest rate remains constant throughout the term of the loan.

Interest Rate

is the cost of borrowing money or the return on investment in a savings account, usually expressed as a percentage of the principal over a period of one year.