COST ACCOUNTING
INFORMATION FOR DECISION MAKING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]


True


False

Detailed explanation1: On the other hand, correlation is simply a relationship where action A relates to action Bbut one event doesn’t necessarily cause the other event to happen. In this example, there’s a correlation between eating ice cream and getting sunburned because the two events are related.
Detailed explanation2: A correlation between variables indicates that as one variable changes in value, the other variable tends to change in a specific direction. Understanding that relationship is useful because we can use the value of one variable to predict the value of the other variable.
Detailed explanation3: A correlation is a measure or degree of relationship between two variables. A set of data can be positively correlated, negatively correlated or not correlated at all. As one set of values increases the other set tends to increase then it is called a positive correlation.
Detailed explanation4: A correlation is a statistical measure of the relationship between two variables. The measure is best used in variables that demonstrate a linear relationship between each other. The fit of the data can be visually represented in a scatterplot.
Detailed explanation5: Correlation tests for a relationship between two variables. However, seeing two variables moving together does not necessarily mean we know whether one variable causes the other to occur. This is why we commonly say “correlation does not imply causation.”