A Quick Look at a Scattergraph of Cost Versus Activity

question 362

True/False

A quick look at a scattergraph of cost versus activity can reveal that there is little relation between the cost and the activity or that the relation is something other than a simple straight line. In such cases, least square regression is highly recommended for estimating fixed and variable costs.

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Definitions:

Mid-Ocean Ridge

An underwater mountain range formed by plate tectonics, where new oceanic crust is created by volcanic activity and then spreads away from the ridge.

Island Arcs

Curved chains of volcanic islands located along a convergent tectonic plate boundary, formed by the subduction of an oceanic plate beneath another plate.

Basalt Eruptions

Volcanic eruptions that produce basalt, a dark-colored volcanic rock rich in iron and magnesium, characterized by low viscosity lava flows.

Ophiolite

A section of the Earth's oceanic crust and the underlying upper mantle that has been uplifted and exposed above sea level.