Which of the Following Correlation Coefficients Represents the Strongest Degree

question 117

Multiple Choice

Which of the following correlation coefficients represents the strongest degree of positive relationship between two variables?

• A)-.46
• B)-.32
• C)+.46
• D)+.27

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Definitions:

Implicit Rate

The interest rate implied by the lease payments in a leasing agreement, used in lease accounting to calculate the present value of lease payments.

Non-Cancelable Lease

A lease agreement that cannot be terminated before its expiration date by either the lessee or the lessor without incurring penalties.

Economic Life

The estimated period over which an asset is expected to be economically useful to its owner or the duration it can generate revenue, beyond which it is not cost-effective to operate.

Warranty

A guarantee, typically from a manufacturer or seller, promising to repair or replace defective goods within a specified time period.