Which of the Following Statements Is Correct Concerning Correlation Coefficients

question 15

Multiple Choice

Which of the following statements is correct concerning correlation coefficients?

• A) A correlation of +.89 is strong and -.89 is weak.
• B) A correlation of +.89 and -.89 are both strong and equally so.
• C) Correlation coefficients are indicators of cause and effect.
• D) A correlation of +1.5 is very strong

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Definitions:

Cash Payments

Transactions in which money is paid out by a business, often for expenses, debts, or purchases.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to reveal net cash from operating activities.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activity into operating, investing, and financing activities.

Operating Activities

Transactions and events that relate to the primary operations of the company, including revenue and expense activities.