If Some Natural Relationship Exists Between Each Pair of Observations

question 149

Multiple Choice

If some natural relationship exists between each pair of observations that provides a logical reason to compare the first observation of sample 1 with the first observation of sample 2, the second observation of sample 1 with the second observation of sample 2, and so on, the samples are referred to as:

• A) matched samples
• B) independent samples
• C) weighted samples
• D) random samples
• E) natural samples

---

Definitions:

Labor Efficiency Variance

A measure of the difference between the actual number of labor hours used and the standard number of labor hours expected to produce a certain level of output.

Materials Quantity Variance

The financial difference between the actual quantity of materials used in production and the standard expected quantity.

Favorable

A term used to describe outcomes or variances that are positive or beneficial to a business, such as lower costs or higher revenues than expected.

Unfavorable

A term used in budgeting and variance analysis indicating costs exceeded the budget or revenue fell short.