Which Pair of Variables Below Reflect a Strong Linear Correlation

question 2

Multiple Choice

Which pair of variables below reflect a strong linear correlation, but the correlation is probably explained at least partially by one or more confounding variables?

• A) education level and per capita income
• B) number of siblings and mother's education level
• C) soft drink consumption and drowning rates
• D) all of the above

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Definitions:

CVP Graph

A visual representation of the Cost-Volume-Profit analysis, showing the relationship between cost, volume, and profit.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, making it more useful for planning and control purposes.

Fixed Costs

Expenses that do not vary with the level of production or sales over the short term.

Management by Exception

A management strategy where managers only intervene in decision making when performance deviates significantly from standards, allowing more focus on important issues.