The Direction of the Relationship Between Two Variables Is Given

question 3

Multiple Choice

The direction of the relationship between two variables is given by a correlation coefficient's ___; the strength of the relationship is given by the coefficient's ___.

• A) absolute value; value
• B) sign; absolute value
• C) sign; value
• D) absolute value; sign

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Definitions:

Yankee Bond

A bond issued in the United States by foreign banks and corporations, denominated in U.S. dollars.

DAX

The stock market index that represents 40 of the largest and most liquid German companies trading on the Frankfurt Stock Exchange.

Nikkei

A redefinition: A major stock market index in Japan, tracking the performance of top-performing companies and serving as a barometer for the Japanese economy.

Hang Seng

The Hang Seng Index is a freefloat-adjusted market-capitalization-weighted stock-market index in Hong Kong, used to record and monitor daily changes of the largest companies of the market.