Which of the Following Correlation Coefficients Expresses the Strongest Degree

question 31

Multiple Choice

Which of the following correlation coefficients expresses the strongest degree of relationship between two variables?

• A) +0.10
• B) -0.67
• C) -0.10
• D) +0.59

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Definitions:

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit.

Pareto Optimal

A state of distributing resources that precludes the possibility of augmenting the status of any participant or preference without detriment to another.

Positive Externalities

Benefits that are enjoyed by a third-party or society as a whole as a result of an economic transaction or activity, without them directly paying for it.

Utility Function

A mathematical representation that describes how consumers rank preferences among different commodity bundles.