A Researcher Finds That the Correlation Between Two Variables Is

question 46

Multiple Choice

A researcher finds that the correlation between two variables is +.63, but this correlation drops to +.20 when a third variable is partialed out. In this case, the researcher should conclude that the third variable:

• A)is not a factor in the correlation.
• B)increases the accuracy of prediction.
• C)is responsible for the original correlation between the variables.
• D)does not influence the relationship between the two variables.

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Definitions:

Corresponding Asset

An asset that is directly related or linked to another activity or transaction, often in financial reporting or accounting.

Provision For Warranties

An estimate of future costs related to repairing or replacing products under warranty, recognized as a liability on the balance sheet.

Equity Instruments

Financial securities that represent ownership interest in a company, such as stocks.

Business Combination

An occurrence or action where a buyer obtains dominance over one or several companies.