A Perfect Spearman Correlation of +1 or −1 Between Two

question 14

Multiple Choice

A perfect Spearman correlation of +1 or −1 between two variables indicates

• A) a perfect linear relationship between the two variables
• B) a perfect monotone function of the two variables.
• C) the Pearson correlation is 1
• D) the Pearson correlation is +1 or -1
• E) the two variables are not related.

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Definitions:

Period Cost

Costs unrelated to the direct production process, recognized as expenses in the period they happen, encompassing sales, general, and administrative expenditures.

Plant Manager

A professional who oversees all operations of a manufacturing facility, including personnel, production processes, and budget management.

Salary

A fixed regular payment, typically expressed as an annual amount, made by an employer to an employee, especially a professional or white-collar worker.

Product Cost

The total expense incurred to produce a product, including costs directly tied to manufacturing such as raw materials and labor, differentiated by highlighting its importance in pricing and profitability analysis.