When Two Variables Have a Negative Correlation and the X-Variable

question 5

Multiple Choice

When two variables have a negative correlation and the x-variable decreases,

• A)the y-variable increases.
• B)the y-variable decreases.
• C)the y-variable stays the same.
• D)the x-variable can never be positive.

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Definitions:

Manufacturing Overhead Budget

A financial plan detailing the projected or expected indirect costs involved in the manufacturing process, excluding direct labor and materials.

Variable Expenses

Costs that vary directly with the level of production or business activity, such as raw materials and commissions.

Selling and Administrative Expense Budget

A detailed plan that estimates the selling and administrative expenses of a business for a specific period.

Budgeted Sales

The projected amount of sales, in units or currency, expected to be achieved in a specific period, as determined by a company's budget.