Eric Has Collected Data on the Relationship Between the Number

question 14

Multiple Choice

Eric has collected data on the relationship between the number of hours the employees at a large number of corporate headquarters spend working on their computers and the profits of the corporations.His scatter diagram of the data shows it clusters near a line running from the bottom right corner to the top left corner.This shows the correlation is

• A) variable.
• B) zero.
• C) positive.
• D) negative.

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Definitions:

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specific accounting period before transferring the net income to retained earnings.

Net Income

Final earnings of a corporation post deductions of expenses and taxes from its aggregate revenue.

Revenues

Income generated from normal business operations, including sales of goods and services, fees, commissions, and other sources.

Expenses

Costs incurred in the process of earning revenue, encompassing a broad range of spending from operational to administrative.