If the Point in the Upper Left Corner of the Scatterplot

question 15

Multiple Choice

If the point in the upper left corner of the scatterplot is removed, what will happen to the Correlation (r) and the slope of the line of best fit (b) ?

• A)r will decrease and b will increase.
• B)r will increase and b will decrease.
• C)Both will decrease.
• D)Both will increase.
• E)They will not change.

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Definitions:

Overhead Cost

Expenses related to the operation of a business that cannot be directly linked to a specific product or service.

Simplicity

The quality of being easy to understand or use; the absence of complexity or complication.

Departmental Overhead Costs

Expenses related to the indirect support of producing goods or services in specific departments, rephrased as the allocation of indirect costs to departmental operations.

Production Volume

The quantity of goods that a company produces within a specific period of time.