Which of These Statements Is True of the Correlation R

question 13

Multiple Choice

Which of these statements is true of the correlation r?

• A) r can only take values 0 or greater than 0.
• B) r can only take values between -1 and 1, inclusive.
• C) r describes only straight-line relationships.
• D) Both "r can only take values 0 or greater than 0" and "r describes only straight-line relationships." are correct.
• E) Both "r can only take values between -1 and 1, inclusive" and "r describes only straight-line relationships" are correct.

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Definitions:

Profit or Loss

The financial result of a company's operations and activities for a specific period, indicating the difference between revenues and expenses.

Ounce

A unit of weight used primarily in the United States, Canada, and the United Kingdom, equal to one-sixteenth of a pound or about 28.35 grams.

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Payoff

The potential gain or loss that will result from a specific investment or decision.