After Conducting a Statistical Analysis of Responses to a Survey,Professor

question 104

Multiple Choice

After conducting a statistical analysis of responses to a survey,Professor Balbos finds a correlation of +3.14 between frequency of air travel and frequency of colds. This indicates that:

• A)Professor Balbos has made a serious error in calculating the correlation coefficient.
• B)a cause-and-effect relationship exists between travel by air and colds.
• C)as air travel increases, the frequency of colds also increases.
• D)as air travel decreases, the frequency of colds increases.

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Definitions:

Marginal Cost

The amount needed to make one more unit of a certain product or service.

Total Economic Costs

The sum of all expenses a firm faces, including both explicit costs (direct payments) and implicit costs (opportunity costs).

Marginal Revenue

The gain in income from selling an additional unit of a product or service.

Marginal Cost

The cost implications of producing an additional unit of either a product or service.