A Study of Home Heating Costs Collects Data on the Size

question 22

Multiple Choice

A study of home heating costs collects data on the size of houses and the monthly cost to heat the houses with natural gas. Here are the data:

A friend tells you that the correlation for the data is r = 0.99984. You conclude from this number that

• A) larger houses cost more to heat than smaller houses, and the relationship is almost perfectly straight.
• B) smaller houses cost more to heat than larger houses, and the relationship is almost perfectly straight.
• C) larger houses cost more to heat than smaller houses, but the relationship is not very strong.
• D) smaller houses cost more to heat than larger houses, but the relationship is not very strong.
• E) your friend made a mistake, because the value of r is impossible.

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Definitions:

Mechanistic Organizations

Highly structured, hierarchical companies with centralized decision-making and strict rules and procedures.

Centralized Organizations

Organizations where decision-making authority is concentrated at higher levels of management, leading to a more controlled and uniform operational approach.

Decentralized Organizations

Organizations where the decision-making authority is distributed among various levels rather than being concentrated at a single point.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.