When Two Variables,X and Y,are Correlated,it Is Possible That

question 66

Multiple Choice

When two variables,X and Y,are correlated,it is possible that:

• A)X causes Y
• B)Y causes X
• C)some other variable causes both X and Y
• D)all of these

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Definitions:

Variable Expenses

Costs that fluctuate with the level of output or sales, such as materials and labor.

Fixed Expenses

Fixed expenses are costs that do not fluctuate with changes in production level or sales volume, including lease payments and insurance.

Volume

The number of units of a product or service sold or produced.

CM Ratio

The CM Ratio, or Contribution Margin Ratio, is a financial metric that shows the proportion of sales revenue that exceeds variable costs, indicating the amount available to cover fixed costs and generate profit.