A Local Shopping Mall Would Like to Better Understand the Effectiveness

question 65

Multiple Choice

A local shopping mall would like to better understand the effectiveness of its security guards in preventing shoplifting.The mall's operation manager uses simple linear regression to develop an equation that predicts the number of daily shoplifting incidents at the mall's stores based on the number of security guards employed. The slope of the regression line is b = -1.2; the intercept of the regression line is a = 14.5.Compute the value of r, the correlation coefficient.

• A)-0.82
• B)0.52
• C)0.68
• D)0.82

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Definitions:

Materials Cost

The cost of raw materials used to produce goods.

Process Costing

A method of costing that is used in industries where production is continuous and the product is indistinguishable from unit to unit.

Equivalent Units

A concept used in cost accounting to represent the amount of work done on partially finished goods, converted into the number of fully finished units.

Conversion Costs

The combination of labor and manufacturing overhead costs required to transform raw materials into finished products.