A Correlation Is Considered to Be Zero If _____

question 14

Multiple Choice

A correlation is considered to be zero if _____.

• A) one variable increases while the other decreases
• B) both variables decrease
• C) both variables increase
• D) there is no relationship between the variables

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Definitions:

Discounted Value

The present value of a future amount of money or a series of cash flows, adjusted for time value of money.

Annuity

A financial product that pays out a fixed stream of payments to an individual, usually used as an income stream in retirement.

Present Value

The immediate value of a prospective amount of money or cash flow series, determined by a specific rate of return.

Future Amount

The predicted total value of an asset or investment at a specific future date, considering factors like interest rates or earnings.