A Pearson R Correlation Is Best Used for Data That

question 58

Multiple Choice

A Pearson r correlation is best used for data that is

• A) only ordinal level.
• B) both ordinal and interval level.
• C) only interval level.
• D) both interval and ratio.

---

Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, typically in cash or additional stock.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to investors.

Supply of Savings

The total amount of savings that households are willing to provide at various interest rates, often influencing investment and economic activity.

Demand for Investment

The amount of spending on investment goods, such as machinery and buildings, that businesses and governments are willing to undertake at various interest rates.