ExpertMedium1 markMultiple Choice
CPA · Question 17 · Area I: Business Analysis
An internal auditor is reviewing a scatter plot of overtime hours (X-axis) versus manufacturing defects (Y-axis). The plot shows a tight cluster of points rising from left to right. What is the most appropriate conclusion?
An internal auditor is reviewing a scatter plot of overtime hours (X-axis) versus manufacturing defects (Y-axis). The plot shows a tight cluster of points rising from left to right. What is the most appropriate conclusion?
Answer options:
A.
There is a strong positive correlation between overtime hours and defects, suggesting fatigue may be a cause of quality issues.
B.
There is a strong negative correlation; increasing overtime reduces defects.
C.
There is no correlation between the variables.
D.
Overtime hours cause defects.
How to approach this question
Interpret the visual description. Upward slope = Positive. Tight cluster = Strong.
Full Answer
A.There is a strong positive correlation between overtime hours and defects, suggesting fatigue may be a cause of quality issues.✓ Correct
A scatter plot rising from left to right indicates a positive correlation: as overtime hours increase, defects increase. The 'tight cluster' indicates the relationship is strong.
Common mistakes
Confusing positive and negative correlation slopes.
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