Which Statement Is Not Correct About the Partial Correlation Coefficient

question 59

Multiple Choice

Which statement is not correct about the partial correlation coefficient?

• A)Partial correlations can be helpful for detecting spurious relationships.
• B)The partial correlation coefficient is generally viewed as more important than the part correlation coefficient.
• C)The partial correlation coefficient represents the correlation between Y and X when the linear effects of the other independent variables have been removed from X but not from Y.
• D)The partial correlation coefficient can be calculated by a knowledge of the simple correlations alone.

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Definitions:

Activity Variances

Differences between planned activities (budgeted) and actual activities in management accounting, used for monitoring performance and guiding decisions.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing for better budgetary control under different operational circumstances.

Actual Activity

The real measure of activity achieved in a given period, such as units produced, machine hours, or labor hours.

Flexible Budget

A budget that adapts or changes according to fluctuations in activity levels or volume.