Which Pair of Variables Below Reflect a Strong Linear Correlation

question 2

Multiple Choice

Which pair of variables below reflect a strong linear correlation, but the correlation is probably explained at least partially by one or more confounding variables?

• A) education level and per capita income
• B) number of siblings and mother's education level
• C) soft drink consumption and drowning rates
• D) all of the above

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Definitions:

Gross Profit

The difference between revenue from sales and the cost of goods sold, before accounting for selling, general, and administrative expenses.

Cost of Goods Sold

The specific costs related to the production of goods that a company markets.

Net Realizable Value

An estimated selling price in the ordinary course of business minus reasonably predictable costs of completion, disposal, and transportation.