What Is the Statistic That Measures the Direction and Strength

question 84

Multiple Choice

What is the statistic that measures the direction and strength of the linear relationship between two variables?

• A) r²
• B) Coefficient of variation
• C) Variance
• D) Coefficient of kurtosis
• E) Correlation coefficient

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Definitions:

Depression

A prolonged period of significant economic decline characterized by a substantial increase in unemployment, a drop in available credit, shrinking output, and bankruptcies.

Keynes

John Maynard Keynes was a British economist whose theories revolutionized macroeconomic practices and governmental economic policies.

Government Spending

Expenditures made by the government for the purpose of economic activity, including salaries of public servants, public projects, and social services.

Recession

A marked reduction in economic performance widespread throughout the economy, persisting for more than a few months, often seen in real GDP, real income, employment, industrial production, and wholesale-retail sales.