If a Study Found That There Was a Perfect Correlation

question 21

Multiple Choice

If a study found that there was a perfect correlation between two variables, which correlation coefficient would describe that relationship?

• A) -100.00
• B) 1.00
• C) 0.00
• D) +0.50

---

Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales volume, such as rent, salaries, and insurance premiums.

Contribution Margin Technique

A method used to evaluate how sales affect net income or profits, calculated as sales revenue minus variable costs.

Net Income (Loss)

The total profit or loss a company generates in a specific period after all expenses, taxes, and costs have been deducted from total revenue.

Fixed Expenses

Costs that do not change with the level of production or sales activities within a certain range or period.