Describe the Error in the Stated Conclusion

question 129

Essay

Describe the error in the stated conclusion.
-Given: Each school in a state reports the average SAT score of its students. There is a significant linear correlation between the average SAT score of a school and the average annual income in the district in which the school is located. Conclusion: There is a significant linear correlation between individual SAT scores and family income.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, or obsolescence.

Depreciation Expense

Depreciation expense represents the allocation of the cost of tangible assets over their useful lives.

Decrease in Payable

A reduction in the amount a company owes to its suppliers or creditors, indicating payments have been made.