The Sale of Christmas Trees and the Number of Suicides

question 97

Multiple Choice

The sale of Christmas trees and the number of suicides are increasing. The increase in Christmas tree sales and death by suicide are probably both explained by the holiday season. During this time of year, a large number of people purchase trees to decorate their homes. Also, during this season, a large number of people become depressed and commit suicide. This suggests that there is a _________________ between Christmas tree sales and suicide.

• A) positive correlation
• B) negative correlation
• C) spurious correlation
• D) unreliable correlation

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and equipment costs.

Net Income

The net income of a business following the deduction of all costs and taxes from its earnings.

Specific Identification Method

An inventory valuation method where costs are directly assigned to individual units of inventory, enabling precise profit margin calculations.