If the Linear Correlation Between Shoe Size and Height Is

question 56

Multiple Choice

If the linear correlation between shoe size and height is 0.758 and Dave is 2 standard deviations above the mean in shoe size,what would you predict is Dave's height with respect to the mean height?

• A)2.000 standard deviations above the mean height
• B)1.516 standard deviations above the mean height
• C)0.575 standard deviations above the mean height
• D)0.758 standard deviations above the mean height
• E)1.149 standard deviations above the mean height

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Definitions:

Individual Security

A specific financial instrument, such as a stock or bond, that represents ownership in a company or governmental debt obligation.

Treasury Bills

Treasury bills are short-term government securities issued at a discount from the face value and mature in one year or less, representing a secure, low-risk investment option.

Portfolio

Group of assets such as stocks and bonds held by an investor.

Beta

A measure of a stock's volatility in relation to the overall market, where a beta greater than 1 indicates higher volatility and less than 1 indicates lower volatility.