The Strength of the Linear Relationship Between Two Numerical Variables

question 126

Multiple Choice

The strength of the linear relationship between two numerical variables may be measured by the

• A) coefficient of correlation.
• B) Y-intercept.
• C) scatter diagram.
• D) slope.

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Definitions:

Output

The cumulative quantity of products or services generated by a corporation or nation.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output.

Diminishing Returns

A principle in economics where each additional unit of input results in a progressively smaller increase in output.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or industry's output expands.