Use the Following Information for the Next 4 Questions

question 11

Multiple Choice

Use the following information for the next 4 questions.
Teresa's Taco Co. had the following results during the most recent year: Sales $500,000; Residual income $5,000; investment turnover 2.5; and a required rate of return of 15%.
-A business segment that has responsibility for both revenues and expenses is called a(n)

• A) Administrative center
• B) Investment center
• C) Profit center
• D) Revenue center

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Definitions:

Pearson Correlation

A measure of the linear correlation between two variables X and Y, giving a value between +1 and -1 inclusive.

Covariance

A statistic that indicates the degree to which two variables vary together.

Nonlinear Relationship

A type of relationship between two variables where there is not a straight-line or proportional association.

Null Hypothesis

A hypothesis that suggests no significant difference or effect in a study.