Two Variables Are Said to Display Correlation If

question 42

Multiple Choice

Two variables are said to display correlation if

• A)they are caused by the same factor.
• B)one occurs before the other.
• C)both measure the same thing.
• D)they vary together.

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Definitions:

Compound Interest

The process of computing interest by including both the primary sum borrowed or deposited and the interest that has previously accumulated over time.

Estimated Cost

A prediction or approximation of the cost of goods or services, based on current and past information, before the actual expense is known.

Net Present Value

A method used in capital budgeting to determine the profitability of an investment by calculating the sum of its present values of all expected future cash flows.

Present Value Index

A financial metric used to evaluate the present value of future cash flows in relation to the initial investment, also known as the profitability index.