One of the Properties of Correlation Coefficient, R, Is: "The

question 28

Essay

One of the properties of correlation coefficient, r, is: "The value of r does not dependon the unit of measurement for either variable." In your own words, what does thismean?

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Definitions:

Machine-Hours

A measure of the total hours that machinery is in operation during the production process.

Markup

The amount added to the cost of a product to create a price point that ensures profit for the company.

Selling Prices

The price at which goods or services are offered to buyers, determined by various factors including cost, demand, and competition.

Machine-Hours

A measure of the time machines are run, used in allocating manufacturing overhead to products.