Looking at the _____ in a Scatterplot Indicates the Strength

question 3

Multiple Choice

Looking at the _____ in a scatterplot indicates the strength of the relationship between two variables and looking at the _____ indicates what type of correlation exists.

• A) X-axis; Y-axis
• B) Y-axis; X-axis
• C) scatter; direction of data points
• D) direction of data points; scatter

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Definitions:

Treasury Bond

A long-term, fixed-interest U.S. government debt security with a maturity of more than ten years.

Yield

Yield is the income return on an investment, expressed as a percentage of the investment’s cost or current market value, commonly used for bonds and dividend-paying stocks.

Zero-Coupon Bonds

Bonds that don’t make periodic interest payments but are issued at a discount to their face value and redeemable for the face amount at maturity.

Expected Interest Rate

The anticipated rate at which interest is to be paid by a borrower for the use of money.