The Editors of a National Automotive Magazine Recently Studied 30

question 85

Multiple Choice

The editors of a national automotive magazine recently studied 30 different automobiles sold in the United States with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway mileage per gallon.A number of different independent variables were collected.The following correlation matrix was developed: If only one variable were to be brought into the model,which variable should it be if the goal is to explain the highest possible percentage of variation in the dependent variable?

• A)0 to 60 mph
• B)Horsepower
• C)Curb weight
• D)Displacement

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Definitions:

Profit Center

A segment or division of a company that is directly responsible for generating its own revenue and profit.

Cost Center

A department or function within a business to which costs are charged for accounting purposes, but does not directly generate revenue.

Investment Center

A business unit or segment within an organization that is responsible for its own revenues, expenses, and investments in assets.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in the production process.