The Standard Error of Estimate Is Equal to Zero Only

question 93

Multiple Choice

The standard error of estimate is equal to zero only if the

• A) correlation between X and Y = 0.
• B) correlation between X and Y = 1.0.
• C) mean on X is equal to the mean on Y.
• D) standard deviation of X is equal to the standard deviation of Y.
• E) distributions of X and Y are normal.

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Definitions:

Chemical Company

A business entity that specifically focuses on the manufacturing, research, and sale of chemicals and chemical-based products.

ABC Philosophy

Stands for Activity-Based Costing, a philosophy that allocates overhead and indirect costs to specific activities, leading to more accurate product or service costing.

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Cost Driver

A factor that causes a change in the cost of an activity or operation.