The Opportunity Cost of an Alternate Course of Action That

question 2

Multiple Choice

The opportunity cost of an alternate course of action that is relevant to a make-or-buy decision is

• A) subtracted from the "Make" costs.
• B) added to the "Make" costs.
• C) added to the "Buy" costs.
• D) None of these answers are correct.

---

Definitions:

Independent Variable

The variable that is manipulated or controlled in an experiment to test its effect on the dependent variable.

Regression Equation

An equation that describes the statistical relationship between one dependent variable and one or more independent variables.

Compute Correlation

The process of determining the degree to which two variables are related or move together, often measured by correlation coefficients such as Pearson's r.

Standard Deviation

The average amount of variability in a set of scores or the scores’ average deviation from the mean.