A Correlation Coefficient

question 88

Multiple Choice

A correlation coefficient

• A) measures the strength of a linear association between two variables
• B) measures the strength of statistical association between two variables
• C) measures the strength of physical association between two variables
• D) measures the strength of logical association between two variables

---

Definitions:

Settlement

The conclusion of a transaction or the resolution of a claim or dispute, usually involving the transfer of funds or assets.

Clean-Up Provision

A clause in a financial contract that requires the borrower to pay off a loan or line of credit in full after a specified period or under certain conditions, to ensure the credit line is periodically brought to a zero balance.

AASB 137

An Australian accounting standard that deals with the accounting for provisions, contingent liabilities, and contingent assets.

Long-Term Project

A project that spans over an extended time period, typically beyond one year, often involving substantial investment or complexity.