Question

Which of the following is false?

a. scatter plots should be prepared to help identify outliers.
b. data points failing in a linear pattern suggest a weak relationship between cost and volume.
c. When performing account analysis, managers use their judgement to classify cost behavior.
d. when creating a scatter plot, volume should be plotted on the x-axis while cost should be plotted on the y-axis.

Answer 1

Option b. Data points failing in a linear pattern suggest a weak relationship between cost and volume is the false statement.

Step-by-step explanation:

The false statement among the given options is option b. Data points failing in a linear pattern suggest a weak relationship between cost and volume.

In a scatter plot, if the points do not exhibit a clear linear trend and are scattered randomly, it indicates a weak relationship between the variables. It means that there is no strong correlation or association between cost and volume.

Other statements - a, c, and d are true. Scatter plots help identify outliers, managers use judgement to classify cost behavior in account analysis, and volume should be plotted on the x-axis and cost on the y-axis while creating a scatter plot.