Answer :
False. On a scatter diagram, costs are usually plotted on the vertical axis while the independent variable, such as the quantity of goods produced or time, is plotted on the horizontal axis.
This is because costs are usually influenced by the independent variable, meaning that as the quantity of goods produced or time increases, the cost also increases. Therefore, the vertical axis is used to represent the dependent variable, which is the cost in this case. Scatter diagrams are commonly used in business and economics to visually represent the relationship between two variables. By plotting data points on the diagram, patterns and trends can be identified and analyzed. This helps businesses to make informed decisions based on the data. It is important to note that scatter diagrams only show a correlation between two variables and do not necessarily imply causation.
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Final answer:
It is false that costs are plotted on the horizontal axis of a scatter diagram. In the graph, costs are plotted on the vertical, or 'y', axis, while the number of units (in this case, haircuts) is plotted on the horizontal axis.
Explanation:
The statement is false. In a scatter diagram or graph, which shows the relationship between two sets of data, costs are typically plotted on the vertical (y) axis, and the other variable (for example, the number of units produced or sold) is plotted on the horizontal (x) axis. This is because costs are typically considered dependent on the number of units produced or sold.
For instance, if a barber shop plots the costs of haircuts against the number of haircuts given, the number of haircuts would generally be on the horizontal axis and costs on the vertical. Hence, if for example the total cost of producing 40 haircuts is $320, and the average cost is $320/40, or $8, these figures would be represented based on their corresponding number of haircuts on the scatter diagram. This organizational method helps to facilitate understanding of the relationship between the two variables.
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