Which Assumption Is Applicable to Regression but Not to Correlation

question 47

Multiple Choice

Which assumption is applicable to regression but not to correlation?

• A)linear relationship between the variables
• B)independence of people (or cases)
• C)error scores are normally distributed
• D)each variable is equally distributed at each point of the other variable

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Definitions:

Prime Cost

The combined cost of direct materials and direct labor involved in manufacturing a product.

Period Costs

Expenses directly tied to a specific time period, such as rent, utilities, and administrative salaries, and not directly to the production process.

Units Sold

The number of individual items that have been sold over a specified period.

Period Costs

Costs that are not directly related to the manufacturing process and are charged as expenses in the period they arise.