Answer the Question Using the Value of R and the Given

question 24

Multiple Choice

Answer the question using the value of r and the given best-fit line on the scatter diagram.
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The scatter diagram and best-fit line show the data for the price of a stock (y) and U.S. employment (x) . The correlation coefficient r is 0.8. Predict the stock price for an employment value of 11.

• A)9.8
• B)9
• C)8
• D)No valid prediction is possible.

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Definitions:

Master Budget

A comprehensive financial planning document that combines all of the individual budgets within a company into one overall budget.

Raw Materials

The basic materials and components used in the manufacturing process to produce finished goods.

Direct Labor

The compensation provided to workers who are directly engaged in manufacturing goods or delivering services.

Cash Collections

The process of gathering all cash received from sales, services, or other sources.