A Pearson Correlation Coefficient Was Selected as the Simplest Statistical

question 14

Multiple Choice

A Pearson correlation coefficient was selected as the simplest statistical tool for assessing the relationship between a country's life expectancy and the % of GDP spent on health care. When applied to the data in Table 1.8, the findings were that:

• A) Life expectancy and % of GDP spent on health care are positively related. Therefore, life expectancy increased for the countries when the percent spent of GDP increased.
• B) The relationship was inverse, and not very strong, and insignificant
• C) The relationship was inverse and very weak
• D) The relationship was significant and positive
• E) None of the above

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Definitions:

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Sales Mix

The relative proportion of different products or services sold by a company, significantly influencing its overall profitability.

Existing Sales

The volume or amount of sales that a company has already achieved within a specific period, prior to any new sales efforts or campaigns.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating the portion of sales available to cover fixed costs and generate profit.