Which of the Following Statements About Correlation Is True

question 251

Multiple Choice

Which of the following statements about correlation is true?

• A)Positive correlations are meaningful,but negative ones are not.
• B)Negative correlations are weak,but positive ones are strong.
• C)Correlations close to +1.0 or -1.0 are strong,while correlations close to 0 are weak.
• D)A strong correlation is indicative of a causal relationship between variables.

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Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.

Normal Balance

The side (debit or credit) of an account that is expected to have a positive balance.

Subtraction

A basic mathematical operation representing the difference between numbers or quantities.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life in equal installments.