Return on Assets Is Normally Classified as a Productivity Measure

question 65

True/False

Return on assets is normally classified as a productivity measure at an organizational level.

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Definitions:

Correlation Coefficient

A numerical measure that indicates the extent to which two variables fluctuate together. A value closer to 1 or -1 indicates a strong relationship.

Best Fitting Line

A line drawn through a scatterplot of data points that best expresses the relationship between those points.

Covariance

A measure that indicates the degree to which two variables change together. If the variables tend to show similar behavior, the covariance is positive; if they show opposite behavior, the covariance is negative.

Standard Deviation

A system for measuring the degree of difference or spread in a set of figures.