If the Correlation Between Variable a and Variable B Is

question 113

Multiple Choice

If the correlation between variable A and variable B is -.5, then

• A) the relationship between A and B is random.
• B) increases in A are associated with decreases in B.
• C) we can use measurements of A to predict measurements of B perfectly.
• D) measured values of A are lower than measured values of B.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing better control and comparison between actual and budgeted performance.

Static Budget

A budget that does not change or adjust to variations in business activity levels throughout the budget period.

Master Budget

A comprehensive financial planning document incorporating all of a company's individual budgets and financial plans, projecting its overall financial activities.

Budgeted Goals

Predicted financial or operational targets that a company aims to achieve within a specific time frame.