Which of the Following Examples Shows a Positive or Direct

question 9

Multiple Choice

Which of the following examples shows a positive or direct correlation?

• A) A study showing the correlation between reading scores and physical education scores is -.63.
• B) A study showing the correlation between ice cream sales and heat is +.78.
• C) The scattergram of pipe smoking and eye color.
• D) The coefficient of determination.

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Definitions:

Allocation Base

A criterion or standard used to distribute costs across multiple cost objects.

Selling and Administrative Expenses

Costs incurred that are not directly tied to the production of goods, such as marketing and office expenses.

Factory Overhead

All indirect costs associated with manufacturing that are not directly tied to a specific product, such as maintenance, utilities, and quality control.

Multiple Products

The practice of producing or selling more than one type of product by a single firm, often to diversify market reach and revenue sources.