If the Correlation of Variables Is Close to 0,then We

question 3

Multiple Choice

If the correlation of variables is close to 0,then we expect to see

• A) an upward sloping cluster of points on the scatterplot
• B) a downward sloping cluster of points on the scatterplot
• C) a cluster of points around a trendline on the scatterplot
• D) a cluster of points with no apparent relationship on the scatterplot
• E) no explanation of what the scatterplot should look like based on the correlation

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Definitions:

Market Price

The immediate price at which the open market is willing to trade assets or services.

Repurchase Stocks

A company's action to buy back its own shares from the marketplace, which can affect the company's stock price and earnings per share.

IRS

Stands for Internal Revenue Service, the U.S. government agency responsible for tax collection and tax law enforcement.

Stock Repurchases

Stock repurchases, also known as share buybacks, occur when a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.