Which of the Following Demonstrates the Strongest Correlation Coefficient

question 24

Multiple Choice

Which of the following demonstrates the strongest correlation coefficient?

• A) 0.0
• B) 1.5
• C) .65
• D) -.72

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Definitions:

Fixed Cost

A periodic cost that does not vary with production volume or sales.

Variable Costs

Costs that change in proportion to the level of production or sales in a business.

Contribution Rate

The percentage of income that is saved or contributed to a retirement plan by an individual or employer.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales. Examples include rent, salaries, and insurance premiums.