The Formulas for Some Measures of Association Can Result in Coefficients

question 2

Multiple Choice

The formulas for some measures of association can result in coefficients with either positive or negative signs. Under which of the following circumstances can those signs be meaningfully interpreted?

• A)Whenever the data are expressed as frequencies
• B)When the data are measured at the nominal level
• C)When the data are measured at the ordinal level
• D)Whenever the data have a modal category
• E)Whenever the data are expressed as percentages

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Definitions:

Charge Customer

This involves billing a customer for goods or services rendered, resulting in an accounts receivable entry in the company's books.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used, but not yet paid for.

Net Sales

Total revenue from sales less returns, allowances, and discounts.

Sales Discounts

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.