What Is Indicated by a Positive Value for a Correlation

question 25

Multiple Choice

What is indicated by a positive value for a correlation?

• A)Increases in X tend to be accompanied by increases in Y
• B)Increases in X tend to be accompanied by decreases in Y
• C)A much stronger relationship than if the correlation were negative
• D)A much weaker relationship than if the correlation were negative

---

Definitions:

Operating Expenses

The costs associated with running the day-to-day operations of a business, such as rent, utilities, and payroll.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life, reducing its book value.

Fixed Asset

Long-term tangible property or equipment that a firm owns and uses in its operations to generate income, typically not expected to be converted to cash within a year.

Fixed Asset Turnover

A ratio that measures a company's ability to generate sales from its fixed-assets investments such as property, plant, and equipment.