The Greatest Disadvantage of Correlation Is

question 6

Multiple Choice

The greatest disadvantage of correlation is:

• A)it has a limited range of values,being only -1 to +1.
• B)it does not enable cause-and-effect conclusions.
• C)its value can be negative.
• D)its value can be zero.

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Definitions:

Cash Dividend

The allocation of earnings in cash form by a company to its stockholders.

Retained Earnings Deficit

A negative balance in retained earnings, indicating that a company has more accumulated losses over time than accumulated profits.

Debit Balance

A situation where the total debits in an account exceed the total credits, indicating an excess of expenses or assets over income or liabilities.

Large Stock Dividend

A distribution of a significant number of additional shares to shareholders, usually as a percentage of the shares they already hold, which often dilutes the share value.