Solve the Problem A) Positive Correlation


B) Positive Correlation

question 44

Multiple Choice

Solve the problem.
-The table below shows the legal costs and the profits of a company from 2000 to 2005. Construct a scatter diagram for the data and state whether legal costs and profits for this company have no correlation, a positive correlation, or a negative correlation for this period.


$\begin{array} { c c c } & \text { Legal Costs } & \text { Profits } \\\text { Year } & \text { (Millions of \$) } & \text { (Millions of \$) } \\2000 & 9 & 9 \\2001 & 14 & 6 \\2002 & 12 & 8 \\2003 & 11 & 14 \\2004 & 15 & 9 \\2005 & 10 & 15\end{array}$

• A) Positive correlation
• B) Positive correlation
• C) No correlation
• D) Negative correlation

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Definitions:

Comparative Advantage

The capability of a company, individual, or country to manufacture a product or offer a service with a reduced opportunity cost than competing entities.

Specialization

The process of focusing efforts and resources on a limited range of activities, goods, or services to gain efficiency or expertise.

Opportunity Cost

Declining the opportunity for potential benefits from a range of alternatives upon selecting one.

Cell Phones

Portable telecommunication devices that allow users to make voice calls and access various digital services over cellular networks.