The Following Data Shows the Price of PAO, Inc A Develop a Scatter Diagram and Draw a Trend Line

question 49

Essay

The following data shows the price of PAO, Inc. stock over the last eight months.
$\begin{array}{|c|c|}\hline \text { Month } & \text { Price } \$ \text { ) } \\\hline 1 & 2.08 \\\hline 2 & 2.00 \\\hline 3 & 2.03 \\\hline 4 & 1.91 \\\hline 5 & 1.88 \\\hline 6 & 1.87 \\\hline 7 & 1.70 \\\hline 8 & 1.67 \\\hline\end{array}$
a. Develop a scatter diagram and draw a trend line through the points.
b. What kind of relationship exists between stock price and time negative, positive, or no relation)?

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Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, often used as a basis for allocating manufacturing overhead costs in job-order and process costing systems.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including costs for utilities, rent, and maintenance, that are not directly tied to production.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated by dividing estimated overhead costs by an allocation base.

Machine-Hours

A measure of production time, representing the hours a machine is operated within a given period.