When the Row Marginals Are Extremely Unequal

question 27

Multiple Choice

When the row marginals are extremely unequal,

• A)lambda is the preferred measure of association.
• B)lambda may exceed 1.00.
• C)any chi square based measure of association will be less than zero.
• D)lambda may be zero even though there is an association between the variables.

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Definitions:

Transfer Prices

Prices charged for the sale of goods or services between divisions or subsidiaries within the same company.

Variable Production Costs

Costs that vary in direct proportion to changes in production volume or levels, such as materials and labor.

Special Parts

Unique or custom components used in manufacturing processes or product assembly that are not commonly available or require specific production.

Responsibility Accounting System

An accounting system that collects, summarizes, and reports financial information related to the responsibilities of individual managers.