Causation Is Not the Only Reason Variables Can Be Correlated

question 50

Essay

Causation is not the only reason variables can be correlated.Discuss the other possible explanations and give an example of a causal statement along with examples of the other possible explanations.

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Definitions:

Credit Union

A financial institution that is owned and operated by its members, focusing on providing credit at competitive rates as well as other financial services.

Maturity Value

For an interest-bearing note, it is the sum of the face value (principal) and the interest dollars: MV = P + I.

360-Day Year

An accounting assumption that simplifies interest calculations by using a year composed of twelve 30-day months.

Leap Years

Years that contain 366 days instead of the usual 365, with an extra day added to February, occurring every four years to maintain the calendar year's alignment with the Earth's revolutions around the Sun.