A Correlation Coefficient of Zero Indicates

question 67

Multiple Choice

A correlation coefficient of zero indicates

• A) the projects have the same expected value.
• B) there is no correlation and no risk reduction when the projects are combined.
• C) there is no correlation, but there is some risk reduction when the projects are combined.
• D) the projects have the same standard deviation.

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Definitions:

Impact

The effect or influence of one factor on another or on the outcome of a situation.

Multiechelon Supply Chain

A complex supply chain system that involves multiple levels of suppliers, warehouses, production facilities, and distribution centers.

Aggregation

The process of combining multiple items or data points into a single group for simplicity or analysis.

Inventory Upstream

Inventory located earlier in the supply chain, typically held by suppliers or manufacturers before it moves down the chain to distributors or retailers.