If Variable X Causes Variable Y

question 18

Multiple Choice

If Variable X causes Variable Y,

• A)the correlation between X and Y should not change over time.
• B)the correlation between X at Time 1 and Y at Time 2 should be greater than the correlation between Y at Time 1 and X at Time 2.
• C)X and Y should be correlated more strongly between Time 1 and Time 2 than they are at Time 2.
• D)the correlation between X and Y should approach 1.00 over time.

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Definitions:

Fixed Quantity Inventory

A replenishment strategy for inventory management where a constant quantity of an item is ordered whenever stock falls to a predetermined level.

Financial Aspect

The monetary considerations and implications involved in a decision, investment, or the overall financial health of an organization.

Generate Cash

The process of creating liquidity or cash flows through activities such as operations, financing, or investments.

Organizational Performance

An analysis of a company's ability to achieve its goals and objectives, measured by factors such as profitability, productivity, and market share.