Which of the Following Describes the Behavior of a Variable

question 21

Multiple Choice

Which of the following describes the behavior of a variable cost per unit?

• A) varies in increasing proportion with changes in the activity level
• B) varies in decreasing proportion with changes in the activity level
• C) remains constant with changes in the activity level
• D) varies in direct proportion with the activity level

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Definitions:

Random Variable

A numerical variable whose values are determined by the outcomes of random situations.

Poisson Distribution

A statistical distribution showing the probability of a given number of events happening in a fixed interval of time or space if these events occur with a constant mean rate and independently of the time since the last event.

Poisson Distribution

A distribution for predicting the probability of a given number of events occurring over a fixed interval of time or space.

Normal Distribution

A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.