The correct answer is a scattergraph, which is a plot that shows the relationship between two variables, in this case, activity output and materials handling costs. The scattergraph can help determine correlations and visualize data trends, often using the slope and y-intercept of a trend line to describe the relationship.
If data points are plotted in such a way that the relationship between activity output and materials handling costs is made visible, this type of plot is referred to as a scattergraph. The other options provided—slope parameter, experience curve, and learning curve—are related to different concepts. A scattergraph is used in various fields including economics and business to visualize and determine the correlation between two variables. In the context provided, it allows for the observation of how materials handling costs might fluctuate with changes in activity output, which can be valuable for decision-making and analysis.
Interpreting the slope is crucial when examining a scatterplot because the slope of the trend line indicates the nature of the relationship between the variables—whether they are positively or negatively correlated. If the slope is positive, it implies that an increase in one variable (activity output) is associated with an increase in the other variable (materials handling costs), and vice versa.
The formula 'y = mx + b' where m stands for the slope and b indicates the y-intercept, is the standard form of a straight line in a two-dimensional graph and is useful to understand the relationship in a graphical format. This is applicable when the scattergraph displays a linear pattern, though in the real world data may not always perfectly fit a straight line, and statistical methods may be used to determine the best-fitting line.