If Variables X and Y Are Correlated, Then Which of the Following

question 52

Multiple Choice

If variables X and Y are correlated, then which of the following is not a possibility?

• A)X causes Y.
• B)X and Y are independent of each other..
• C)Y causes X.
• D)X and Y may be caused by a third variable, Z.

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Definitions:

Net Income

The amount of earnings remaining after all operational, interest, and tax expenses have been deducted from total revenue, reflecting the financial health of a company.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, reflecting the portion of sales that helps cover fixed costs and generate profit.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as lease payments and salaries of permanent staff.

Net Income

The profit remaining after all expenses, taxes, and costs have been subtracted from total revenue.