A Study Was Conducted to Determine If There Was a Relationship

question 60

Multiple Choice

A study was conducted to determine if there was a relationship between the prices a non-member of a book club paid for various publications and the prices that a member paid for the same publications. The data gathered is shown below. Compute the value of the correlation coefficient.

• A) 0.762
• B) 0.857
• C) 0.679
• D) 0.932

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Definitions:

Discount Rate

The discount rate refers to the interest rate applied in discounted cash flow analysis to calculate the present value of future cash flows.

Annual Cash Inflows

The total amount of money received by a business from its operations, investments, and financing activities over the course of a year.

Curb-Forming Machine

A specialized construction equipment used for shaping concrete curbs, gutters, and sidewalks by guiding prepared concrete into the desired shapes.

Net Cash Inflows

The total amount of cash received minus the total amount of cash spent over a specific period of time.