A Low Correlation Coefficient Implies That

question 4

Multiple Choice

A low correlation coefficient implies that

• A)the line always has a flat slope
• B)in the scatterplot, the points fall quite far away from the line
• C)the two variables are unrelated
• D)you should use a tighter scale of the vertical and horizontal axis to bring the observations closer to the line

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Definitions:

Wage Rate

The standardized amount of compensation an employee receives from an employer in exchange for their labor, typically expressed per hour or year.

Firefighters

Emergency responders trained to fight fires, conduct rescue operations, and mitigate other Hazards to protect life and property.

Infinitely Inelastic

Describes a situation where the demand for a good does not change regardless of changes in its price.

Economic Rents

Earnings in excess of the minimum amount required to keep a factor of production in its current use.