A Perfect Straight Line Sloping Downward Would Produce a Correlation

question 28

Multiple Choice

A perfect straight line sloping downward would produce a correlation coefficient equal to

• A)+1
• B)-1
• C)0
• D)+2
• E)-2

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Definitions:

Cost of Goods Sold

The direct financial outlays for the creation of goods a company markets, involving materials and labor.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated before the next period's inventory is added.

Debt to Total Assets

A financial ratio that measures the percentage of a company's assets financed through debt.

Liquidity

The measure of how easily an asset can be converted into cash without affecting its market price.