Correlations Are Often Used to Help Demonstrate the Reliability and Validity

question 27

True/False

Correlations are often used to help demonstrate the reliability and validity of measurement.

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Definitions:

Contribution Margin Ratio

The percentage of sales revenue that remains after deducting variable costs, used to cover fixed costs and generate profit.

Variable Cost

Costs that change in proportion to the level of goods or services produced by a business.

Contribution Margin

The gap between the income from sales and variable expenses, which serves to offset fixed expenses and produce earnings.