Why Is It Unwise to Conclude That If Two Variables

question 168

Multiple Choice

Why is it unwise to conclude that if two variables are correlated, one must have caused the other?

• A) Variables can never be measured with complete accuracy.
• B) Any single variable is bound to have multiple causes.
• C) Some unmeasured third variable might make them appear related when in fact they are not.
• D) It is impossible to conclude that two variables are related unless one can measure them perfectly.

---

Definitions:

Governmental Paperwork

Documents required by government agencies that businesses need to fill out and submit for regulatory, tax, or legal purposes.

Asset-Based

Asset-based refers to a type of business financing or lending that uses the company's assets as collateral to secure the loan.

Comparable Businesses

Companies operating in the same or similar industry, used as benchmarks to assess relative performance, valuation, and strategic positioning.

Income

Money received, especially on a regular basis, for work or through investments.