If the Correlation Between Two Variables Is 1, Then the Points

question 23

Multiple Choice

If the correlation between two variables is 1, then the points of their scatterplot:

• A) all lie within 1 unit of the regression line.
• B) all lie within \(\frac{1}{2}\) unit of the regression line.
• C) all lie on the regression line.
• D) lie so that exactly half of the points are on each side of the regression line.

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Definitions:

Positive

Characterized by or denoting an effect, result, or attribute that is beneficial or conducive to growth or well-being.

Constant Elasticity

A condition where the elasticity, or responsiveness, of a variable does not change regardless of the level of the variable being examined.

Linear Demand

A market demand situation where a product's price and the quantity demanded have a linear relationship.

Curve

In economics, it typically refers to a graphical representation showing the relationship between two variables.