If There Is a Causal Relationship Between Two Variables X

question 69

Multiple Choice

If there is a causal relationship between two variables X and Y,

• A)both should be used as explanatory variables.
• B)then the causal variable should be used as the explanatory variable.
• C)then they must be positively correlated.
• D)one of them can be omitted from the analysis.

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Definitions:

Basic Earnings Per Share

A measure of a company's profitability on a per-share basis, calculated by dividing net income by the number of outstanding ordinary shares.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to each number.

Short-term Creditor

A creditor that provides loans or credit to a business or individual with an expectation of repayment within a short period, typically less than a year.

Liquidity

The ability of an asset to be quickly converted into cash without losing its value.