Use the Following to Answer the Question(s) Below

question 26

Multiple Choice

Use the following to answer the question(s) below.
Below is Excel output showing the coefficient of correlation between personal income and vacation expenses (both in $thousands) for a large sample of clients of one travel agency in Toronto.
-Which of the following statements are false?

• A) The correlation coefficient of 0.691 indicates a relatively strong positive linear association.
• B) The correlation coefficient of 0.691 has no units.
• C) If we swap the variables, the correlation coefficient will still be equal to 0.691.
• D) Correlation is not sensitive to scaling the data. So, new scaling has no effect on the value of the correlation coefficient. It will remain unchanged.
• E) If we swap the variables, the correlation coefficient will be equal to 1.447.

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Definitions:

Economic Wealth

The accumulation of valuable resources and assets, including money, property, and investments, that contribute to an individual's or nation's economic power and living standard.

Economic Freedom

The ability of individuals to make their own economic decisions, including the decisions to buy, sell, and produce, with minimal government intervention.

Heritage Foundation

A conservative think tank based in the United States that conducts research and advocacy on public policy issues.

Hong Kong

A Special Administrative Region of China known for its vibrant economy and status as a global financial center.