The Size of the Correlation Coefficient,a Common Measure of Relationship

question 11

True/False

The size of the correlation coefficient,a common measure of relationship between variables in itemized rating scales,is influenced by the number of scale categories.The correlation coefficient increases with a reduction in the number of categories.

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Definitions:

Raw Materials Inventory

The total cost of all the materials that are used to make a product but have not yet been used in the manufacturing process.

Predetermined Overhead Rate

A rate calculated at the beginning of a period for assigning overhead cost to products or activities, based on estimated costs and activity levels.

Applied Overhead

The portion of overhead costs allocated to individual jobs or products based on a predetermined rate.

Raw Materials Inventory

The total cost of all the components used to manufacture a product that a company has in stock but has not yet used in production.