The correlation between X and Y
A) cannot be negative since variances are always positive.
B) is the covariance squared.
C) can be calculated by dividing the covariance between X and Y by the product of the two standard deviations.
D) is given by corr(X, Y) = .
Answer: C
You might also like to view...
Which of the following statements is false?
A. If a negative externality exists, the market output is greater than the socially optimal output. B. If a positive externality exists, the market output is less than the socially optimal output. C. If there are no external costs or benefits, then it follows that marginal private costs equal marginal social costs and marginal private benefits equal marginal social benefits. D. When a positive externality exists, marginal social benefits are greater than marginal private benefits. E. none of the above
Along a backward-bending labor supply curve, the
a. income effect always dominates the substitution effect b. substitution effect always dominates the income effect c. substitution effect is always equal to the income effect d. substitution effect dominates the income effect at high wage rates e. substitution effect dominates the income effect at low wage rates
If the demand for a product is unit-elastic, a 25 percent increase in its price will result in:
a. a 25 percent change in total revenue. b. no change in quantity demanded. c. a 1 percent increase in quantity demanded. d. a 25 percent decrease in quantity demanded. e. a 100 percent change in quantity demanded.
If the market price for a crop is $4.00 a bushel, and the price support is $5.00, then dropping the price support to $3.50
A. will cause nothing to happen. B. will cause the price received by farmers to fall to $4.00. C. will cause the price received by farmers to rise. D. will cause the price received by farmers to fall to $3.50.