Two Variables, a and B, Have a Strong Linear Correlation

question 22

Multiple Choice

Two variables, A and B, have a strong linear correlation. What is the direction of causality?

• A)A causes B
• B)B causes A
• C)Some third variable causes both A and B
• D)Any of the above are possible

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Definitions:

Insurance Company

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.

Claims

Assertions or statements, typically requiring verification or evidence, often used in the context of insurance or legal fields.

Homeowners

Individuals who own their residences, possessing both the dwelling and the land it sits on.

Time Series Data

A sequence of data points collected or recorded at successive time intervals, often used for forecasting future trends.