True or False QuestionTrue or false: On a scatter diagram, costs are plotted on the horizontal axis.True false question.TrueFalse

Statement Analysis

The statement claims that on a scatter diagram, costs are plotted on the horizontal axis.

Review of Scatter Diagram Conventions

1. Definition of a Scatter Diagram: A scatter diagram is used to visualize relationships between two quantitative variables. Typically, each axis represents one variable.

2. Common Convention: In most cases, the independent variable is plotted on the horizontal (x) axis, while the dependent variable is plotted on the vertical (y) axis.

3. Cost Representation: Cost is often treated as an independent variable when analyzing data like profit vs. cost, where profit is the dependent variable.

Conclusion

Given the common conventions of plotting scatter diagrams, the statement is False. Costs are generally not plotted on the horizontal axis; instead, they are usually placed on the vertical axis when analyzed against another independent variable.