A Team of Researchers Computes Correlation Coefficients Between Family Income

question 273

Multiple Choice

A team of researchers computes correlation coefficients between family income and the number of words children hear each hour in the home and between family income and the ratio of affirmations to prohibitions that children hear.What sorts of coefficients are the researchers likely to find?

• A) They should find a positive correlation between family income and the number of words children hear, but a near-zero correlation between family income and the ratio of affirmations to prohibitions that children hear.
• B) They should find a near-zero correlation between family income and the number of words children hear, but a positive correlation between family income and the ratio of affirmations to prohibitions that children hear.
• C) They should find near-zero correlations between family income and both the number of words children hear and the ratio of affirmations to prohibitions that they hear.
• D) They should find positive correlations between family income and both the number of words children hear and the ratio of affirmations to prohibitions that they hear.

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Budgeting

The process of creating a plan to spend your money, delineating how the funds will be allocated over a specific time period.

Spending Variance

The difference between the actual amount spent and the budgeted or planned amount, typically related to operational budgets.

Food And Supplies

Items and materials used in the production or service of food industry operations, including raw ingredients and operational supplies.