If All the Points of a Scatter Diagram Lie on the Least

question 70

Multiple Choice

If all the points of a scatter diagram lie on the least squares regression line, then the coefficient of determination for these variables based on these data

• A) is 0.
• B) is 1.
• C) is either 1 or -1, depending upon whether the relationship is positive or negative.
• D) could be any value between -1 and 1.

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Definitions:

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in product cost calculation, excluding fixed overhead.

Net Operating Income

Net operating income is the profit generated from a company's normal business operations, excluding expenses and revenues from non-operating activities.

Absorption Costing

A costing method that includes all manufacturing costs, both fixed and variable, in the price of a product.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a product.