Correlation Can Be Used Only for Making Predictions, Not for Making

question 163

Multiple Choice

Correlation can be used only for making predictions, not for making ______________.

• A) a third variable
• B) cause-and-effect statements
• C) two variables correlate
• D) observations

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Definitions:

Pareto Optimal

A situation or allocation of resources from which it is impossible to reallocate to make any one individual better off without making at least one individual worse off.

Marginal Rate of Substitution

The rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility, reflected in the slope of an indifference curve.

Wheat

A cereal grain that is a staple food in many parts of the world, used to make products like bread, pasta, and flour.

Milk

A nutrient-rich liquid food produced by the mammary glands of mammals, commonly consumed by humans as a beverage or used in food production.