The Director of Graduate Admissions Is Analyzing the Relationship Between

question 50

Multiple Choice

The director of graduate admissions is analyzing the relationship between scores in the GRE and student performance in graduate school, as measured by a student's GPA. The table below shows a sample of 10 students. (See the Excel Data File.) Which of the following statements is correct?

• A) The correlation between GRE and GPA is negative and weak.
• B) The correlation between GRE and GPA is positive and weak.
• C) The correlation between GRE and GPA is negative and strong.
• D) The correlation between GRE and GPA is positive and strong.

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Definitions:

Average Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Present Value Factors

Numerical factors used in calculating the present value of a future amount, considering the time value of money.

Internal Rate of Return

The discount rate that makes the net present value of all cash flows (both positive and negative) from a particular project or investment equal to zero.

Present Value

The present-day value of a future cash sum or cash flow sequence, with a given interest rate.