Which Statement Is True Regarding Correlation

question 109

Multiple Choice

Which statement is true regarding correlation?

• A)Correlation does not imply causation.
• B)Causation does not imply correlation.
• C)Both A and B are true.
• D)Neither A nor B are true.

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Definitions:

Fair Value

The price at which an asset could be bought or sold or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Variable Interest Entity

A legal entity in which an investor holds a controlling interest that is not based on the majority of voting rights.

Consolidation

The process of combining financial information from several departments or subsidiaries within a company into a single financial statement.

Controlling Financial Interest

A situation where an entity has the power to govern the financial and operating policies of another entity so as to benefit from its activities.