A Company Manager Believes That There Should Be a Relationship

question 210

Multiple Choice

A company manager believes that there should be a relationship between total sales for a month (in dollars) and the number of sales people on the floor. Which of the following correlation coefficients shows the strongest support for her belief?

• A) 0.92
• B) 0.33
• C) -0.67
• D) -0.90
• E) 0.0

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Definitions:

Economic Profit

Profit calculated by subtracting both visible and hidden costs from total revenue, offering insight into the true financial gain of a business endeavor.

Marginal Revenue

The additional income received from selling one extra unit of a product or service.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Profit-Maximizing

A strategy firms adopt aiming to produce the quantity of goods or services that leads to the highest possible profit.