Mara Finds That the Correlation Between Variables a and B

question 93

Multiple Choice

Mara finds that the correlation between variables A and B is +.43, while the correlation between variables A and C is -.78. These results indicate that

• A) the correlation between A and C is stronger than the correlation between A and B.
• B) the correlation between A and B is stronger than the correlation between A and C.
• C) variable A causes variable B but not variable C.
• D) variable A causes both variables B and C.

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Definitions:

Business Activity

Any actions undertaken by a company as part of its operations, including production, sales, marketing, and administration.

Unit Costs

Unit Costs refer to the total expenditure incurred to produce, store, and sell one unit of a product, including all variable and fixed costs.

Variable

An element, feature, or factor that is liable to vary or change; in science and mathematics, a quantity that can assume any of a set of values.

Fixed Costs

Charges that are unaffected by changes in production or sales volumes, like lease payments, employee salaries, and insurance costs.