When Two Variables Have a Positive Correlation

question 44

Multiple Choice

When two variables have a positive correlation,

• A)when the x-variable increases,the y-variable decreases.
• B)when the x-variable decreases,the y-variable increases.
• C)when the x-variable increases,the y-variable increases.
• D)More than one of the above is correct.

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Definitions:

Maintenance Cost

The expense associated with the upkeep and repair of equipment or facilities, ensuring they continue to operate efficiently.

Independent Variable

A variable in an experiment or model that is manipulated or changed to observe its effect on a dependent variable.

Overhead Cost

Indirect costs not directly tied to production but necessary for running business operations, such as rent, utilities, and administrative expenses.

Fixed Component

A portion of the total costs that remains unchanged regardless of the level of production or business activity.