The Correlations Table Below Indicates That: Correlations ** Correlation Is Significant at the 0

question 3

Multiple Choice

The correlations table below indicates that: Correlations
$\begin{array}{|l|l|r|r|}\hline & & {\text { Sales }} & \begin{array}{r}\text { Advertising } \\\text { expenditure }\end{array} \\\hline \begin{array}{l}\text { Productivity } \\\text { (average } \\\text { salesper } \\\text { month) }\end{array} & \text { Pearson correlation } & & \\\hline & \text { Sig. (two-tailed) } & & 0.354\left(^{* *}\right) \\\hline & N & 100 & 0.103 \\\hline \begin{array}{l}\text { Months } \\\text { employed }\end{array} & \text { Pearson correlation } & 0.843\left({ }^{* *}\right) & 100 \\\hline & \text { Sig. (two-tailed) } & 0.000 & 1 \\\hline & N & 100 & 100 \\\hline\end{array}$ ** Correlation is significant at the 0.01 level (two-tailed) .

• A) about 35 per cent of variance in productivity can be explained by the variance in months employed.
• B) about 71 per cent of the variance in productivity can be explained by the variance in months employed.
• C) about 13 per cent of the variance in productivity can be explained by the variance in months employed.
• D) there is no association between productivity and months employed.

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Definitions:

Markets Fail

Occurs when a market economy does not efficiently allocate resources, leading to outcomes like monopolies, public goods issues, or externalities.

Efficient Allocation

The distribution of resources in a way that maximizes the net benefits to society or the economy.

Efficiency

A measure of how well resources are used to achieve a goal, minimizing waste.

Incentives

Financial or non-financial rewards offered to encourage specific behaviors or actions among individuals or organizations.