The Manufacturer of Packaging Materials Examines the Relationship Between X

question 37

Multiple Choice

The manufacturer of packaging materials examines the relationship between x = strength of the fiber and y = temperature during the production process. The obtained data are given in the table. ​ ​ The accompanying fitted line plot is from Minitab. ​ ​ If the selected outlier (1800, 273) is deleted from the data set, how would it affect the R-squared value? ​

• A) The changes in the R-squared value would be insignificant.
• B) The R-squared value would increase.
• C) The R-squared value can either increase or decrease, depending on other factors.
• D) The R-squared value would decrease.
• E) Removing outliers does not affect the R-squared value.

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Definitions:

Cost of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Inventory Purchases

Transactions involving buying products or raw materials for the purpose of resale or production.

Merchandise

Goods that are purchased, stored, and then sold by retailers or wholesalers, typically in the context of inventory for sale.

Cash Disbursements

Payments made by a business in cash, including expenses, debt payments, and distributions to shareholders.