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

question 80

Multiple Choice

The correlations table below indicates that: Correlations
$$\begin{array} { | l | l | r | r | } \hline & & { \text { Sales } } & \begin{array} { r } \text { Advertising } \\\text { expenditure }\end{array} \\\hline \text { Sales } & \text { Pearson correlation } & 1 & 0.753 \left( { } ^ { * * } \right) \\\hline & \text { Sig. (two-tailed) } & & 0.005 \\\hline & N & 100 & 100 \\\hline \begin{array} { l } \text { Adverting } \\\text { expenditure }\end{array} & \text { Pearson correlation } & 0.753 \left( { } ^ { * * } \right) & 1 \\\hline & \text { Sig. (two-tailed) } & 0.000 & \\\hline & N & 100 & 100 \\\hline\end{array}$$ ** Correlation is significant at the 0.01 level (two-tailed) .

• A) about 75 per cent of variance in sales can be explained by the variance in advertising expenditure.
• B) about 57 per cent of the variance in advertising expenditure can be explained by the variance in sales.
• C) about 57 per cent of the variance in sales can be explained by the variance in advertising expenditure.
• D) about 75 per cent of the variance in advertising expenditure can be explained by the variance in sales.

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Definitions:

Split-Off Point

The stage in a joint production process where multiple products become separately identifiable, leading to allocation of joint costs.

Joint Costs

Joint Costs refer to costs incurred during the production process that are shared by multiple products and cannot be individually attributed to a single product.

Direct Method

An approach in cash flow statement preparation where major classes of gross cash receipts and payments are disclosed.

Support Departments

Units within an organization that provide essential services or support to frontline departments but do not generate revenue directly.