The Process by Which the Raw Data Are Transformed into New

question 42

Multiple Choice

The process by which the raw data are transformed into new variables that have a mean of 0 and a variance of 1 is called ________.

• A) standardization
• B) covariance
• C) correlation
• D) regression
• E) analysis of variance

---

Definitions:

Marginal Cost

Marginal Cost is the additional cost incurred from producing one more unit of a good or service, an important concept in economics for decision-making regarding production levels.

Deadweight Loss

describes a loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is distorted by external factors like taxes or subsidies.

Demand Curve

represents the relationship between the price of a good and the quantity of that good consumers are willing to purchase.

Monopoly Power

Monopoly Power describes the ability of a company or entity to control the price and supply of a product or service, due to the lack of significant competition.