Which of the Following Is NOT a Caveat of Correlation

question 93

Multiple Choice

Which of the following is NOT a caveat of correlation?

• A) It's use is limited to metric variables (interval or ratio scaled).
• B) It examines the relationship between only two variables.
• C) Do not assume cause and effect.
• D) It is limited to linear relationships.
• E) It is limited to Boolean relationships.

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Definitions:

Consumption Tax

A tax on the purchase of goods or services, which can be proportional, progressive, or regressive, and is levied on the expenditure on goods and services.

Sales Tax

A government-imposed charge on goods and services purchased, collected at the point of sale.

Financial Statements

Official records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Retained Earnings

The portion of a company's profits that is kept or retained rather than being paid out as dividends to shareholders.