Given a dataset where r = -.9, adding a new case where the value of x is high and the value of y is low is most likely to…

a. increase the magnitude of the correlation
b. decrease the magnitude of the correlation
c. have no effect on the correlation
d. skew the correlation


a. increase the magnitude of the correlation

Business

You might also like to view...

Long-term bonds have greater interest rate risk than shorter-term bonds

Indicate whether the statement is true or false

Business

The Family Entertainment and Copyright Act of 2005 established criminal penalties for willful copyright infringement of musical works or motion pictures, but does allow for the sale and use of technology that can skip content of films in order to edit out language, violence, or sex

Indicate whether the statement is true or false

Business

Risk-based capital requirements take into account differences in a particular insurers' underwriting and investment practices

Indicate whether the statement is true or false

Business

The cost of preferred stock:

A) should be adjusted for taxes when computing WACC. B) is ignored by all firms when computing WACC. C) is generally calculated using the overall firm's beta. D) is equal to the stock's dividend yield. E) is set equal to the pretax cost of debt since it is a fixed income security.

Business