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:

Note Receivable

A written promise for amounts to be received, typically including interest, by one party from another.

Liability

An obligation or debt that arises during the course of business operations, which the company is responsible to repay.

Equipment Purchase

The acquisition of physical assets, such as machinery or tools, that are used in the operations or production processes of a business.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as an annual percentage of the principal.