The Correlation Between Two Variables Is of -0

question 29

Multiple Choice

The correlation between two variables is of -0.18. One can conclude that:

• A) an increase in one variable causes a small decrease in the other variable.
• B) there is a strong, positive association between the two variables.
• C) there is a strong, negative association between the two variables.
• D) there is a positive association between the variables, but it is weak.
• E) there is a negative association between the variables, but it is weak.

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Definitions:

Weighted Average Cost

The total cost of goods available for sale divided by the number of goods available for sale, giving each item a weight proportional to its cost.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk of investing in the company.

Pre-tax Cost

The cost of an investment or expense before the application of taxes, representing the gross expense.

Market Price

The rate at present for the purchase or sale of a service or asset.