I the Purpose of Correlation Analysis Is to fiNd How

question 87

Multiple Choice

i. The purpose of correlation analysis is to find how strong the relationship is between two variables.
ii. A coefficient of correlation of -0.96 indicates a very weak negative correlation.
iii. The standard error of estimate measures the accuracy of our prediction.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

FIFO Process Cost Method

An accounting method for valuing inventory and the cost of goods sold based on the assumption that the earliest goods purchased or manufactured are sold first.

Equivalent Units

A method used in process costing that converts partially completed units into a number of fully completed units.

Direct Materials Costs

The cost of raw materials that are directly used in the manufacture of a product.

FIFO Method

First-In, First-Out, an inventory valuation method where the first items purchased are the first ones to be removed from inventory.