When Graphing Ratio Data,why Is It Preferable to Set the Ordinate

question 62

Multiple Choice

When graphing ratio data,why is it preferable to set the ordinate of the y-axis at 0?

• A) It is simply the traditional way of doing things, and has no inherent benefit.
• B) Setting the ordinate to other values may yield an exaggerated impression of the changes in the variable.
• C) Doing so is the best protection against statistic-based challenges regarding methodology, findings, and conclusions.
• D) Ratio-level data has a theoretical range from 0 to plus or minus infinity.

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Definitions:

EOQ Model

Economic Order Quantity model is used in inventory management to determine the optimal order size that minimizes the total cost of inventory, including holding costs and ordering costs.

Total Annual Inventory Costs

The comprehensive sum of all expenses associated with holding and managing inventory over a year, including storage, insurance, and obsolescence costs.

Unit Price

The cost per unit of a product or service, which allows for the comparison of costs across different units and quantities.

Inventory Models

Mathematical models and methodologies used to determine optimal inventory levels that balance holding costs with demand, to minimize overall costs.