Which Correlation Coefficient Most Closely Represents the Relationship Depicted in the Scatterplot

question 59

Multiple Choice

Which correlation coefficient most closely represents the relationship depicted in the scatterplot below?

• A)-.75
• B)+.15
• C)-.15
• D)+.75

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Definitions:

Profit-Maximizing

The approach a company takes to determine the most profitable pricing and output combination.

Deadweight Loss

An inefficiency in the market that occurs when supply and demand are out of balance, resulting in lost economic opportunity.

Consumer Surplus

The distinction in the collective amount consumers are disposed and financially able to spend on a product or service, and the collective amount they actually spend.

Profit-Maximizes

A strategy or behavior exhibited by firms aiming to achieve the highest possible profits by adjusting their production levels, prices, and cost structures.