I the Purpose of Correlation Analysis Is to Find How

question 110

Multiple Choice

i. The purpose of correlation analysis is to find how strong the relationship is between two variables. ii. A coefficient of correlation close to 0 (say, 0.08) shows that the relationship between two variables is quite weak.
iii. The strength of the correlation between two variables depends on the sign of the coefficient of correlation.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Total Cost

The complete cost of producing or acquiring goods or services, including fixed and variable costs, but excluding externalities.

Holding Inventory

involves maintaining a stock of goods or materials to meet demand without incurring stockout or excessive surplus costs.

Carrying Costs

Expenses incurred by holding inventory over a period, including storage costs, insurance, and opportunity costs.