One Reason Why Cause-And-Effect Relationships Cannot Be Inferred from Correlations

question 4

Multiple Choice

One reason why cause-and-effect relationships cannot be inferred from correlations is because

• A) correlational relationships are usually temporary.
• B) correlational relationships are always based on coincidence.
• C) many other unidentified variables may be possible causes of a correlation.
• D) the correlational method is not useful in determining relationships between variables.
• E) All of the above

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Definitions:

Algebraic Forms

Mathematical expressions that represent relationships between variables and constants in an equation form.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping from left to right.

Straight Line Demand

An economic model where the demand for a product changes at a constant rate relative to price changes, depicted as a straight line on a graph.

Important Factors

Critical elements or variables that significantly influence an outcome or determine the success of a particular process or activity in economics.