What Is Indicated by a Pearson Correlation of R =

question 55

Multiple Choice

What is indicated by a Pearson correlation of r = +1.00 between X and Y?

• A)Each time X increases, there is a perfectly predictable increase in Y
• B)Every change in X causes a change in Y
• C)Every increase in X causes an increase in Y
• D)All of the other 3 choices occur with a correlation of +1.00.

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Definitions:

Efficiency Variance

A metric used to measure the difference between the actual use of resources and the standard expected use of resources in the production process.

Variable Overhead

Costs that change in proportion to the activity or volume of production but are not directly associated with the production of a specific unit, such as utilities.

Direct Labour Hours

The total hours worked by employees that are directly involved in the production process.

Factory Overhead Rate

A calculation used to assign manufacturing overhead costs to individual units of production, based on a certain activity base.