Variable X Is Correlated with Variable Y

question 29

Multiple Choice

Variable X is correlated with Variable Y. Which of the following could explain this correlation?

• A) X causes Y.
• B) Y causes X.
• C) A third variable causes or influences both X and Y.
• D) All of these choices.

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Definitions:

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The tax savings achieved by deducting payable interest on debt from taxable income, thereby reducing the overall tax expense.