A Scatterplot Allows One to See
A) Whether There Is

question 26

Multiple Choice

A scatterplot allows one to see

• A) whether there is any relationship between two variables
• B) what type of relationship there is between two variables
• C) Both options are correct.
• D) Neither option is correct.
• An economic development researcher wants to understand the relationship between the average monthly expenditure on utilities for households in a particular middle-class neighborhood and each of the following household variables: family size,approximate location of the household within the neighborhood,and indication of whether those surveyed owned or rented their home,gross annual income of the first household wage earner,gross annual income of the second household wage earner (if applicable),size of the monthly home mortgage or rent payment,and the total indebtedness (excluding the value of a home mortgage)of the household.
• The correlation for each pairing of variables are shown in the table below:
• Table of correlations
• \(\begin{array}{| l| lllll| l}
• \begin{array}{l|llll}
• \hline &\text { Family Size }&\text {Location }&\text {Ownership }&\text {First hoome }&\text {Second lnoome }&\text { Monthly Payment }&\text {Utilties }&\text {Debt: }\\
• \hline \text { Family Size}&1.000 & & & & \\
• \text {Location }&-0.010 & 1.000 & & & \\
• \text {Dunership }&-0.025 & -0.386 & 1.000 & & \\
• \text {First hoome }&-0.063 & -0.537 & 0.445 & 1.000 & \\
• \text {Second hoome }&-0.058 & -0.508 & 0.424 & 0.884 & 1.000 \\
• \text {Monthly Payment }&-0.076 & -0.511 & 0.552 & 0.514 & 0.478 &1.000\\
• \text { Utilities}&0.256 & -0.346 & 0.935 & 0.388 & 0.366&0.489&1.000 \\
• \text {Debt }&0.294 & -0.461 & 0.744 & 0.560 & 0.523&0.605&0.778&1.000\\\hline
• \end{array}
• \end{array}\)

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Definitions:

Derived Demand

Demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.

Resource Demand

Refers to the total amount of goods and services that businesses require to produce their own goods and services.

MRP

An acronym for Material Requirements Planning, a system used for production planning and inventory control, or alternatively for Marginal Revenue Product, the extra revenue generated from employing one more unit of a resource.

Wage Rate

The fixed amount of compensation paid to employees for their labor, typically expressed as a rate per hour.