Which of the Following Correlation Coefficients Represents the Strongest Relationship

question 17

Multiple Choice

Which of the following correlation coefficients represents the strongest relationship between two factors?

• A) -.15
• B) +.03
• C) +.38
• D) -.80

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Definitions:

Liability Rules

Legal principles that determine how the responsibility for damages or losses is allocated among parties in legal disputes.

Pollution

The occurrence or entry of harmful or toxic materials into the environment.

Taxing

The process of levying charges on citizens or organizations by a government to fund public services and initiatives.

Marginal Damage Cost

The additional cost incurred from producing one more unit of a good or service, which often relates to the negative externalities or damages caused by the increase in production.