Consider the Following to Answer the Question(s) Below

question 32

Multiple Choice

Consider the following to answer the question(s) below:
To determine whether the tip left at the end of a meal is related to the size of the total bill at their restaurant, Chez Michelle, data were gathered for 10 customers. The data and summary statistics are shown below.

-If a residual plot exhibits a curved pattern in the residuals, this means that

• A) The relationship between x and y is also curved.
• B) The residuals are not normally distributed.
• C) x and y are positively correlated.
• D) The residuals have a constant variance.
• E) The relationship between x and y is linear.

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Definitions:

Budgeted Sales

Projected revenue from goods or services sold, as estimated during a company's budgeting process.

Manufacturing Overhead Budget

An estimation of all manufacturing costs excluding direct materials and direct labor, planned for a specific period.

Direct Labor-Hour

A measure of the amount of time, typically in hours, that direct labor work directly on producing goods.

Budgeted Overhead

An estimate of all costs associated with production that are not direct labor or direct materials costs, projected for a specific period.