An Advantage to the Use of Z Scores in Correlation

question 50

Multiple Choice

An advantage to the use of Z scores in correlation is that it

• A)makes it easier to find the best fitting line.
• B)reduces the number of scores that must be plotted to find the regression line.
• C)is the only format in which one can determine the magnitude of a relationship.
• D)eliminates the need to find the intercept.

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Definitions:

Variance Analysis

The process of investigating the difference between planned and actual numbers to understand deviations in financial performance.

Direct Materials Price Variance

The difference between the actual cost and the standard cost of materials used in production, indicating how effectively a company manages its material costs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the organization.

Variable Budget

A financial plan that adjusts for changes in the volume of activity, allowing for flexible cost controls depending on actual performance.