I Perfect Correlation Means That the Scatter Diagram Will Appear

question 151

Multiple Choice

i. Perfect correlation means that the scatter diagram will appear as a straight line ii. If the coefficient of correlation is 0.80, the coefficient of determination is 0.64.
iii. The coefficient of determination can assume values between 0% and 100%

• 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:

Investing Activities

These activities generate cash inflows and outflows related to acquiring or disposing of noncurrent assets such as property, plant, and equipment, long-term investments, and loans to another entity.

Cash Outflow

Money or financial resources leaving a business, typically for expenses, investments, or other payments.

Cash Equivalents

Short-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds, that are made solely for the purpose of generating a return on temporarily idle funds.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.