If There Is a Very Strong Correlation Between Two Variables

question 48

Multiple Choice

If there is a very strong correlation between two variables then the coefficient of determination must be

• A)much larger than 1, if the correlation is positive
• B)much smaller than -1, if the correlation is negative
• C)any value larger than 1
• D)None of these alternatives is correct.

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Definitions:

English Auction

A method of auctioning in which the price ascends with successive bids and remains with the highest bidder who then wins the auctioned item.

Reservation Price

The maximum price a consumer is willing to pay for a good or service, beyond which they would prefer not to make a purchase.

Expected Revenue

The amount of money a business anticipates receiving from the sale of goods or services over a certain period, based on predicted sales volume and price.

English Auction

A public sale where items are sold to the highest bidder, with bids openly increasing in value.