Why Do We Create a Scatter Plot of the Data

question 60

Multiple Choice

Why do we create a scatter plot of the data in regression analysis?

• A) To compute the error terms.
• B) Because Excel calculates the function from the scatter plot.
• C) To visually check for a relationship between X and Y.
• D) To estimate predicted values.

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Definitions:

Machine Hour

A measurement of productive time, indicating how many hours a particular machine or piece of equipment has been operated.

High-low Method

In cost accounting, a strategy for estimating fixed and variable costs by looking at the peak and bottom activity levels.

Fixed Cost

An expense that does not change with an increase or decrease in the number of goods or services produced or sold.

Electricity

A form of energy resulting from the existence of charged particles, used as a power source.