After Conducting a Statistical Analysis of Responses to a Survey

question 5

Multiple Choice

After conducting a statistical analysis of responses to a survey, Professor Patterson finds a correlation of +2.36 between participation in sporting events and physical injuries. This finding indicates that:

• A) Professor Patterson has made a serious error in calculating the correlation coefficient.
• B) a cause-and-effect relationship exists between participation in sporting events and physical injuries.
• C) as participation in sporting events increases, the risk of physical injury also increases.
• D) as participation in sporting events decreases, the risk of physical injury increases.

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Definitions:

Present Value

Present value is the today's worth of an anticipated future amount of money or cash flows, factoring in a specified rate of return.

Discount

A reduction applied to the price of goods, services, or securities.

Future Value

The value of an asset or an amount of money at a specific point in the future, taking into account interest or capital gains.

Interest Rate

The percentage of an amount of money charged for its use over a specific period of time.