Which of These Statements Is TRUE When Drawing a Scatter

question 33

Multiple Choice

Which of these statements is TRUE when drawing a scatter diagram?

• A)The highest number should start where the axes meet.
• B)The variable that predicts the other goes on the vertical axis.
• C)The variable that predicts the other goes on the horizontal axis.
• D)The variable that is being predicted goes on the horizontal axis.

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Definitions:

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period.

Dividends

Funds disbursed by a company to its stockholders, typically as a share of earnings.

Market Price

The present cost at which a service or asset is available for purchase or sale in the marketplace.

Average Collection Period

The typical duration a business must wait to collect payments from its customers for goods or services sold on a credit basis.