A Correlation of

question 2

Multiple Choice

A correlation of .98 between X and Y would indicate

• A)virtually no relationship between X and Y.
• B)a causal relationship,where X causes Y.
• C)a weak positive relationship between X and Y.
• D)a strong positive relationship between X and Y.

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Definitions:

Break-Even

A financial situation in a business where the income equals the costs, leading to neither profit nor loss.

Monthly

Pertaining to something that occurs, is calculated, or reported every month.

Variable Expense

An expense that changes in proportion to production output or sales.

Target Profit

The amount of net income a company aims to achieve for a specific period by setting certain sales targets and cost controls.