Which of the Following Are Caveats of Correlation

question 56

Multiple Choice

Which of the following are caveats of correlation?

• A)Its use is limited to metric variables (interval or ratio scaled).
• B)It examines the relationship between only two variables.
• C)Do not assume cause and effect.
• D)It is limited to linear relationships.
• E)all of the above

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Definitions:

Expected Sales

The projected amount of sales, in units or financial terms, that a company expects to achieve within a certain period.

Finished Goods Inventory

The stock of completed products ready for sale but not yet sold.

Estimated Sales

A projection of the total sales in units or monetary terms for a future period, based on historical data, market trends, and other factors.

Direct Labor Wage Rate

The rate of pay for workers directly involved in manufacturing or producing goods, excluding indirect labor such as supervisors.