For the Next Questions, Identify the Choice That Contains a Conclusion

question 1

Multiple Choice

For the next questions, identify the choice that contains a conclusion with a common correlation error.
-Given: There is a linear correlation coefficient very close to 0 between mothers who smoked during pregnancy and the incidence of influenza in their babies

• A) Conclusion: the frequency of mothers' smoking is not related in any way to the incidence of influenza in their babies
• B) Conclusion: an increase in the frequency of mothers' smoking is not linearly related to an increase in the incidence of influenza in their babies
• C) Conclusion: a decrease in the frequency of mothers' smoking is not linearly related to a decrease in the incidence of influenza in their babies
• D) Conclusion: there is not a linear relationship between the frequency of mothers' smoking and the incidence of influenza in their babies

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Definitions:

Cash Flows

The entirety of monetary transactions coming into and going out of a corporation, crucially affecting its immediate financial resources.

Indirect Method

An approach to preparing the cash flow statement where the net income is adjusted for non-cash transactions and changes in working capital to estimate cash flows from operating activities.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Long-Term Investments

Assets that a company intends to hold for more than one year, including stocks, bonds, and real estate.