One Assumption for Using Hypothesis Testing for Pearson Correlation Is

question 52

Multiple Choice

One assumption for using hypothesis testing for Pearson correlation is that one variable should vary equally at each level of the other variable.What is the easiest way to determine whether this assumption has been met?

• A) Review the value of r; if it is high, then the assumption has been met.
• B) Conduct a post hoc test following the calculation of r.
• C) Draw a scatterplot to see whether the range of values is equal across all values of the other variable.
• D) Calculate the cross-products of the deviation scores.If the result is positive, then the assumption has been met.

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Definitions:

Standard Variable Overhead Rate

The predetermined rate at which variable overhead costs are expected to occur relative to a specific activity or cost driver.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with production volume.

Variable Overhead Efficiency Variance

Variable overhead efficiency variance is the difference between the actual and budgeted variable overhead cost based on the efficient utilization of resources.

Direct Labor-hours

The amount of labor hours that can be directly attributed to the production process, serving as a basis for allocating manufacturing overhead costs in some costing systems.