Answer:
The figure above shows the labeled axes and has drawn in it the relationships between the price and the quantity of blouses purchased for Katie and Kim.
Topic: Scatter diagrams
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
5) The figure above shows the price of a DVD player from 1996 to 2000.
a. What type of graph is illustrated above?
b. What is the trend in the price of a DVD player?
Answer:
a. The graph is a time-series graph because it plots time along the horizontal axis and the price of a DVD player along the vertical axis.
b. The trend in the price of a DVD player is negative, that is, the price of a DVD player has generally decreased from one year to the next.
Topic: Time-series graph
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
6) What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?
Answer: Variables can have two relationships: positive (or direct) and negative (or inverse). A positive relationship occurs when the variables move in the same direction, so that when one increases, the other also increases. A negative relationship occurs when the variables move in the opposite direction, so that when one increases, the other decreases. When a positive relationship is graphed, the line slopes upward to the right. When a negative relationship is graphed, the line slopes downward to the right.
Topic: Relationships
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 2
Status: Old
AACSB: Analytic skills
7) What is the difference between a positive and a negative relationship?
Answer: Two variables are positively related when an increase (decrease) in one is associated with an increase (decrease) in the other. In this case, the variables move together, in the same direction. Two variables are negatively related when an increase (decrease) in one is associated with a decrease (increase) in the other. In this case, the variables move in the opposite direction.
Topic: Relationships
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 2
Status: Old
AACSB: Analytic skills
8) A graph of two variables is a vertical line. What is the interpretation of this result?
Answer: When the graph of two variables is a vertical line, the variables are not related because, with this graph, whenever the variable measured along the vertical axis changes, the variable measured along the horizontal axis does not change.
Topic: Unrelated variables
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 2
Status: Old
AACSB: Analytic skills
9) The figure above shows how the sales of the video game "Tomb Raider—Lara Retires" change when the advertising spent on the game changes. Is the relationship between advertising and the number of games sold positive, negative, or neither? Explain your answer.
Answer: The figure shows that there is a positive relationship between advertising and the number of video games sold. The relationship is positive because the two variables move together: If advertising increases, so, too, does the number of games sold.
Topic: Positive relationship
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix - Checkpoint 2
Status: Old
AACSB: Analytic skills