A Scatterplot with Many Points in the Lower Right Quadrant

question 2

Multiple Choice

A scatterplot with many points in the lower right quadrant of the plot, many points in the upper left quadrant, and very few points in the other quadrants would indicate a:

• A) positive correlation.
• B) negative correlation.
• C) inverse correlation.
• D) none of the above

---

Definitions:

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.

Operating Results

The outcome of a company's core business activities, including revenue generation and expenses, over a specific period.

Fixed Cost

Costs that do not vary with the level of production or sales, remaining constant within a specific range of activity.

Contribution Margin

The difference between a company's sales revenue and its variable costs.