A Manager Wishes to Determine the Relationship Between the Number

question 71

Multiple Choice

A manager wishes to determine the relationship between the number of miles (in hundreds of miles) the manager?s sales representatives travel per month and the amount of sales (in thousands of dollars) per month.
Calculate the correlation coefficient, r. $$\begin{array} { l | c | c | c | c | c | c | c | c | c | } \text { Miles traveled, } \mathrm { x } & 5 & 6 & 13 & 10 & 11 & 18 & 6 & 4 & 14 \\\hline \text { Sales, y } & 30 & 32 & 77 & 61 & 64 & 60 & 47 & 54 & 119\end{array}$$

• A)0.632
• B)0.561
• C)0.717
• D)0.791

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Definitions:

Volume Variance

A measure used in budgeting and financial analysis to quantify the difference between planned and actual volumes of production or sales.

Even Flow

A management strategy aimed at maintaining consistent production levels, minimizing fluctuations in inventory and workload.

Machine Breakdowns

Occurrences where industrial or office machinery fails to operate, often leading to operational delays and the need for repairs.

Variable Factory Overhead

Costs in the production process that vary with the level of production output, such as utilities and materials.