The Coefficient of Correlation R Is a Number That Indicates

question 51

Multiple Choice

The coefficient of correlation r is a number that indicates the:

• A) direction of the relationship between the dependent variable y and the independent variable x.
• B) strength of the relationship between the dependent variable y and the independent variable x.
• C) proportion of the variation in the dependent variable y that is explained by the independent variable x.
• D) Only A and B are correct.
• E) A,B,and C are all correct.

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Definitions:

Short Run

A period in which at least one of a firm's inputs is fixed and cannot be changed.

Monopolistically Competitive

A market structure with many firms selling products that are substitutes but differentiated enough that each firm's product has its own demand.

Fixed Costs

Costs that do not vary with the level of output or business activity, such as rent, salaries, and loan payments.

Short Run

A period in economics during which at least one input is fixed, limiting the immediate capacity to adjust production levels.