If the Correlation Between X and Y Is -0

question 59

Multiple Choice

If the correlation between X and Y is -0.42, approximately what percentage of the variance in Y can be explained by X?

• A) 18 per cent
• B) 42 per cent
• C) 21 per cent
• D) 84 per cent

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Definitions:

Overapplied

A situation where the allocated overhead costs exceed the actual overhead costs incurred.

Overhead

Expenses related to the day-to-day running of a business that are not directly linked to the production of goods or services, such as rent and utilities.

Underapplied

A term used in accounting to describe a situation where the allocated manufacturing overhead is less than the actual overhead incurred.

Overapplied

Refers to a situation where the amount of overhead cost allocated to products or services is more than the actual overhead cost incurred.