A Correlation Between Two Variables Implies That ________

question 32

Multiple Choice

A correlation between two variables implies that ________.

• A) there is a cause-effect relationship between the two variables
• B) it is impossible to measure one variable without measuring the other
• C) there is a mutual relationship between both the variables
• D) when one variable changes, the other variable always changes by exactly the same amount

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Definitions:

Transactions

Economic events that require recording in the financial statements because they affect assets, liabilities, or equity.

Common Stock

A type of equity security representing ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Dividends

Financial distributions made to shareholders by a company, often as a portion of its earnings.

Salaries

Regular payments made to employees for their services during a specified period.