Consider the Following Scatterplot, Which Depicts the Tread Depth (Measured

question 13

Multiple Choice

Consider the following scatterplot, which depicts the tread depth (measured in mils, where 1 mil = 0.001 inch) versus the number of miles driven on the tire (measured in thousands of miles) . The correlation between x and y:

• A)is approximately 0.97.
• B)is approximately -0.97.
• C)is approximately 0.
• D)cannot be computed because the trend is curved.

---

Definitions:

Merchandise Purchases Budget

A financial plan detailing the amount to be spent on acquiring inventory for sale during a certain period.

Budgeted Balance Sheet

A financial statement that projects the financial position of a company at a future date, based on estimated revenues, expenses, and capital expenditures.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a product.

Full Costs

The complete cost of producing an item or providing a service, including direct, indirect, fixed, and variable costs.