USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 7.1. Compute the correlation coefficient between RA Computer and the Market Index.
A) -0.32
B) 0.78
C) 0.66
D) 0.58
E) 0.32

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
 
-Refer to Exhibit 7.1. Compute the correlation coefficient between RA Computer and the Market Index.
A) -0.32 
B) 0.78 
C) 0.66 
D) 0.58 
E) 0.32

Quizplus · Accepted Answer

The correlation coefficient is a measure of the strength and direction of a linear relationship between two variables. Without the specific data from Exhibit 7.1, we rely on the given options and typical correlation values. Option C, 0.66, is a plausible moderate positive correlation value that might be calculated between a stock and a market index.