Which of the Following Statements About the Interpretation of Correlations

question 23

Multiple Choice

Which of the following statements about the interpretation of correlations is NOT true?

• A) Just because two variables are correlated doesn't mean that one necessarily caused the other.
• B) There is nothing in correlation analysis that can be used to establish causality.
• C) When you obtain a statistically significant correlation coefficient between two variables, you can safely assume that one variable caused another.
• D) All that analytical procedures can do is measure the nature and degree of association between variables.
• E) Statements of causality must come from underlying knowledge and theories about the phenomena under investigation.

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Definitions:

Privatization

The transfer of ownership or operation of a property or business from the government to private individuals or organizations.

Commodification

The process of treating something that was not previously considered as a sellable product as if it can be bought and sold in a market.

Subsidization

The provision of financial assistance or support by a government or organization to lower the cost of services or commodities.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often leading to increased connectivity and trade.