One of the Disadvantages of the Correlational Method Is That

question 383

Multiple Choice

One of the disadvantages of the correlational method is that

• A) correlations may be weak.
• B) correlations may be negative or zero.
• C) it can only be used in laboratory settings.
• D) the relationships observed between variables may be caused by some unknown third factor.

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Definitions:

Average Fixed Cost

The fixed expenses of a company divided by the number of units produced, showing cost per unit.

Average Variable Cost

Average variable cost is the total variable costs of production divided by the quantity of output produced; it changes with production volume.

Marginal Cost

The expenditure required to produce one more unit of a product or service.

Incremental Cost

The additional cost associated with producing one more unit of a product or service.