Louis Katz,a Cost Accountant at Papalote Plastics,Inc

question 28

Multiple Choice

Louis Katz,a cost accountant at Papalote Plastics,Inc.(PPI) ,is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI.Louis's independent variable is production lot size (in 1,000's of units) ,and his dependent variable is the total cost of the lot (in $100's) .Regression analysis of the data yielded the following tables. The correlation coefficient between Louis's variables is ________________.

• A) -0.73
• B) 0.73
• C) 0.28
• D) -0.28
• E) 0.00

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Definitions:

Tax Burden

The total amount of tax that individuals or businesses must pay, relative to their income or profit.

Progressiveness

A political or social philosophy advocating or implementing social reform or new, liberal ideas.

Tax Revenue

The income that is gained by governments through taxation, forming a significant part of their funding for public expenditures.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly in response to price changes.