One of the More Common Errors with Respect to Correlational

question 292

Multiple Choice

One of the more common errors with respect to correlational findings is making the assumption that a correlation between two variables:

• A) does not tell the researcher anything useful.
• B) means that since one variable predicts a second variable, the first must be causing the second variable.
• C) , whether positive or negative, must be a perfect correlation to be useful to researchers.
• D) does not permit a researcher to make predictions about one variable based on information from another variable.

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Definitions:

Semiannually

A term describing an action or event that occurs twice a year.

Semiannual Coupon

A bond or fixed-income security payment made to its holder twice a year as interest for the investment.

Coupon Rate

The interest rate stated on a bond or other fixed-income security that the issuer promises to pay the holder until maturity.

Formulation

The process of creating a strategy, plan, or method for dealing with a specific issue or for achieving a specified goal.