For Which of the Following Pearson Correlations Would the Data

question 4

Multiple Choice

For which of the following Pearson correlations would the data points be clustered most closely around a straight line?

• A)r = -0.10
• B)r = +0.40
• C)r = -0.70
• D)There is no relationship between the correlation and how close the points are to a straight line.

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Definitions:

Activity Rate

A predetermined overhead rate in activity-based costing. Each activity cost pool has its own activity rate which is used to apply overhead to products and services.

Estimated Overhead

Projected costs for running a business that does not directly tie to specific product manufacturing, such as rent, utilities, and management salaries.

Direct Labour-Hours

The total hours of work directly contributed by labor to the production of goods.

Traditional Costing System

A costing methodology that allocates overhead costs to products based on a predetermined overhead rate, often using a single cost driver.