How Would a Perfect Correlation (R=1) Between Two Variables Look

question 34

Multiple Choice

How would a perfect correlation (r=1) between two variables look on a scatterplot?

• A) The data points would form a horizontal line
• B) The data points would form a vertical line
• C) The data points would form a line from the lower left to the upper right
• D) The data points would form a line from the upper left to the lower right

---

Definitions:

Administrative Expenses

Administrative expenses are the costs associated with the general administration of a business, such as salaries of office staff, utilities, and rent.

Schedule of Expected Cash Collections

A detailed projection of the amounts and timing of cash inflows from receivables anticipated to be collected.

Merchandise Purchases Budget

A financial plan that outlines the expected purchases of merchandise inventory over a certain period, considering anticipated sales and desired inventory levels.

Accounts Receivable

Outstanding payments from clients to a business for goods delivered or services rendered, awaiting settlement.