CIMA Fundamentals of Business Economics BA1 Question # 139 Topic 14 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 139 Topic 14 Discussion

BA1 Exam Topic 14 Question 139 Discussion:
Question #: 139
Topic #: 14

Brilliant Buys Local is a subsidiary of Brilliant Buys, and operates a number of smaller stores in local neighbourhoods.

The managing director of Brilliant Buys Local, Mr Davidson, has been given a scatter diagram with sales of each store based on the size of the local population.

Which of the following options outlines the best ways to interpret this diagram in this context?

Select ALL that apply.


A.

Use Pearson's coefficient to accurately draw a line of best fit


B.

Draw a line of best fit by eye and estimate how much of a correlation there is between store sales and population


C.

Rearrange the data points on the scatter diagram so that it shows any correlation more clearly


D.

Use the diagram to interpret that two of the stores with the highest sales are in areas with a medium-sized population


E.

Use the diagram to interpret that the store with the lowest sales was in an area with a population of 5000


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