A Statement Is Made About Correlation

question 210

Multiple Choice

A statement is made about correlation. State whether the correlation is positive or negative and whether the correlation ismost likely due to coincidence, a common underlying cause, or a direct cause.
-Towns with a lot of churches had a lot of homicides last year. Towns with fewer churches had fewer homicides.

• A)Positive correlation; direct cause
• B)Negative correlation; common underlying cause
• C)Positive correlation; common underlying cause
• D)Positive correlation; coincidence

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Definitions:

Replacement Cost

The current cost of replacing an asset with a new one of similar kind and quality.

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Inventory Liquidations

The process of converting a company's inventory into cash, typically at a discount, often used to meet short-term financial needs.

Income Taxes

Taxes imposed by government authorities based on the income earned by individuals and corporations.