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:

Adjusting Entry

An accounting journal entry made to amend the preliminary financial records before preparing financial statements.

Manufacturing Overhead

Indirect costs related to manufacturing, including utilities, rent for manufacturing facilities, and equipment maintenance, not directly tied to individual units produced.

Overapplication of Overhead

A situation where the allocated overhead costs exceed the actual overhead costs incurred.

Machine Hours

Machine hours denote the total amount of time a machine is operated within a specific period, used for costing and operational efficiency measures.