In What Way Do the Concepts Causality and Correlation Relate

question 14

Multiple Choice

In what way do the concepts causality and correlation relate to each other?

• A)Causality is needed for correlation.
• B)Causality is one of the conditions for correlation.
• C)Correlation is one of the conditions for causality.
• D)Correlation (alone)is enough evidence for causality.

---

Definitions:

Creditors

Individuals or institutions that lend money or extend credit to others and are owed repayment in the future.

Pro Forma Financial Statement

Financial reports that project the future income, assets, and liabilities of a company, often used in planning and decision-making.

Financial Condition

Refers to the status of an entity's financial health, often evaluated through its assets, liabilities, and equity.

Distribution Company

A business that is responsible for transporting and delivering goods from manufacturers to end users or retailers.