Business Chapter 9

Question 1

Centring

Answer 1

A method used to calculate a moving average where the average is plotted or calculated in relation to the central figure

Question 2

Correlation

Answer 2

The relationship between two sets of variables

Question 3

Correlation coefficient

Answer 3

A measure of the extent of the relationship between two sets of variables

Question 4

Extrapolation

Answer 4

Forecasting future trends based on past data

Question 5

Line of best fit

Answer 5

A straight line drawn through the centre of a group of data points plotted on the scatter graph

Question 6

Moving average

Answer 6

A succession o averages derived from successive segments (typically of constant size and overlapping) of a series of values

Question 7

Scatter graph

Answer 7

A graph showing the performance of one variable against another independent variable on a variety of occasions.it is used to show whether a correlation exists between the variables

Question 8

Time-series analysis

Answer 8

A method that allows a business to predict future levels from past figures