In a Correlation Matrix, the Main Diagonal Contains Correlations of 1.00

question 16

True/False

In a correlation matrix, the main diagonal contains correlations of 1.00 because it represents a variable's correlation with itself.

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a particular input, while keeping other inputs constant.

Worker

An individual who performs labour for a company or another person in exchange for compensation.

Diminishing Returns

A rule that implies that after reaching a certain threshold, the profit rate from investing more into a specific sector won't keep rising unless there are changes in other contributing factors.

Production Function

An equation that describes the maximum output that can be achieved with a given set of inputs.