Given a Correlation of R=

question 35

Multiple Choice

Given a correlation of r=.80, the common variance shared by the variables is approximately

• A) 25%
• B) 40%
• C) 65%
• D) 80%

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Definitions:

Inventory

Items that a company holds for the purpose of selling in the normal course of business, or materials used in the production of goods to be sold.

Dividends

Funds disbursed by a company to its stockholders, typically from earnings.

Consolidation Worksheet

A tool used in preparing consolidated financial statements that combines the financial information of a parent company and its subsidiaries.

Goodwill Impairment

A charge that companies record when the book value of goodwill on their balance sheets exceeds its estimated fair value, indicating the asset has decreased in value.