A Purchased Good That Can Have a Big Effect on Profitability

question 76

Multiple Choice

A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a

• A)routine item.
• B)leverage item.
• C)bottleneck item.
• D)critical item.

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Definitions:

Dependent Variable

The variable in an experiment or model that is assumed to depend on one or more independent variables.

Coefficient of Correlation

A metric that evaluates the degree and angle of a direct correlation between two quantities.

Coefficient of Determination

A statistical measure, often denoted as R-squared, that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables using a linear equation.