Jason Finds a Correlation of

question 1

Multiple Choice

Jason finds a correlation of .85 between monthly homicide rates and monthly ice cream sales. However, he believes that the correlation is caused by monthly changes in temperature. In this case, temperature represents a(n) _____ variable.

• A) outcome
• B) predictor
• C) spurious
• D) extraneous

---

Definitions:

Consumer Surplus

The contrast between what buyers are willing to offer for a good or service and the amount they actually spend.

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service to acquire it.

Cell Phone

A portable telephone that uses wireless technology to send and receive calls and data.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at different prices.