If a Scatter Plot of Variables X and Y Shows

question 100

Multiple Choice

If a scatter plot of variables X and Y shows a trend that can be summarized to a large degree by a straight line with slope 0.8 and y-intercept 0.2 (i.e., Y = 0.2 + 0.8X) , then the correlation coefficient between X and Y is ______.

• A)0.8, and there is a causal relation between X and Y (either X causes Y or Y causes X)
• B)0.2, and there is a causal relation between X and Y (either X causes Y or Y causes X)
• C)0.8, but there is no causal relation between X and Y
• D)0.2, but there is no causal relation between X and Y
• E)0.8, and there may be a causal relation between X and Y, but not necessarily

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Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash inflows and outflows from operating activities are reported, as opposed to the indirect method.

Operating Expenses

The costs associated with the normal operations of a business, such as rent, utilities, and payroll, excluding cost of goods sold.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.