Pearson's Correlation Coefficient (R) Requires That Both Variables Be Interval

question 79

True/False

Pearson's correlation coefficient (r) requires that both variables be interval or ratio data.

Know how to use Excel to present and refine the visual appearance of data.

Understand manual and automatic calculation options in Excel.

Understand the concept of profit-sharing plans and their motivational aspects.

Recognize the importance of including employees in profit-sharing plans and the factors determining eligibility.

---

Definitions:

Perpetual Inventory System

A bookkeeping approach that documents inventory movements as they occur, ensuring the inventory balance is always current.

Net Price Method

The net price method accounts for purchases after subtracting discounts, essentially calculating the actual price paid for goods or services after all reductions.

Purchase Discounts Lost

The extra cost incurred by a company for not taking advantage of the discounts offered by suppliers for early payments.

Catalog Price

The price of an item as listed in a catalog, which may be subject to discounts based on various sales promotion strategies.