In Using Regression to Predict an Individual's Performance on the Criterion

question 28

Multiple Choice

In using regression to predict an individual's performance on the criterion based on his or her score on the instrument, the prediction is least accurate when the correlation is:

• A)-1.00
• B)0.00
• C).50
• D)1.00

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Definitions:

Fixed Costs

Fixed overheads that stay the same no matter how much is produced or sold, including rental fees or staff salaries.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the amount by which sales can drop before a business incurs a loss.

Break-even Point

The level of sales at which total revenues equal total costs, and the business makes no profit but also incurs no loss.

Break-even Analysis

An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.