If the Correlation Coefficient for Two Variables Is Computed to Be

question 118

True/False

If the correlation coefficient for two variables is computed to be a -0.70, the scatter plot will show the data to be downward sloping from left to right.

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Definitions:

Predetermined Factory Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs based on a selected activity base to individual products.

Actual Activity Base

A measure used to allocate costs based on the actual level of activity or usage, often used in budgeting and accounting.

Predetermined Overhead Rate

An estimated charge used to assign manufacturing overhead costs to individual units of production, calculated before the period begins.

Direct Labor Hours

Direct Labor Hours refer to the amount of time spent by workers directly involved in the production of goods or services, used as a basis for allocating labor costs to products.