Which of the Following Statements Is True

question 4

Multiple Choice

Which of the following statements is true?

• A) Causation always exists when there is a high correlation between the variables.
• B) Variables can be statistically related even if they are not causally related.
• C) Regression can be used to measure the linear association between two nominal variables.
• D) When the correlation between two variables is 0, it implies a perfect positive association.

Understand how Venn diagrams represent categorical propositions.

Interpret the meaning and application of shading and Xs in Venn diagrams.

Distinguish among different types of categorical propositions using Venn diagrams.

Recognize the relationship between existential import and Venn diagrams.

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Definitions:

Plowback Ratio

The proportion of earnings retained by a business, rather than distributed to its shareholders as dividends, to reinvest in the core business or to pay debt.

Dividend Policy Decision

The strategy that a company uses to determine the size and timing of its dividends payments to shareholders.

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per dollar of revenue; used to evaluate the investment intensity of a business's operations.

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its fixed assets to generate sales, calculated by dividing net sales by average fixed assets.