When Interpreting the Covariance Between Variables X and Y,which of the Following

question 98

Multiple Choice

When interpreting the covariance between variables x and y,which of the following statements is most accurate?

• A)A negative value of covariance that,on average,if x is below its mean,then y tends to be below its mean.
• B)A positive value of covariance indicates that,on average,if x is above its mean,then y tends to be above its mean.
• C)A positive value of covariance indicates that,on average,if x is above its mean,then y tends to be below its mean.
• D)A negative value of covariance indicates that,on average,if x is above its mean,then y tends to be above its mean.

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Definitions:

Accounting Period

The span of time covered by financial statements, often a quarter or year, reflecting the company's financial performance and position.

Accrual Entry

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Accounting Accruals

Accounting method where revenue and expenses are recorded when they are earned or incurred, not necessarily when cash is received or paid.

Unpaid Payroll

The total sum of all wages, salaries, bonuses, and deductions owed to employees that have not yet been paid.