If a Pearson Correlation Is Close to 0, the Data

question 41

Multiple Choice

If a Pearson correlation is close to 0, the data points on the scatterplot

• A) will be scattered randomly throughout the graph.
• B) will be close to the regression line from the lower left corner to the upper right corner.
• C) will be close to the regression line from the lower right corner to the upper left corner.
• D) will be close to the regression line which runs straight across the middle of the graph.

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Definitions:

Administrative Expenses

Costs related to the general administration of a business, such as salaries of senior executives, legal and accounting services.

Product Costs

The total costs associated with making a product, including direct materials, direct labor, and manufacturing overhead.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor costs.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to fixed costs and profits.