Regarding Correlations, Which of the Following Statements Is FALSE

question 24

Multiple Choice

Regarding correlations, which of the following statements is FALSE?

• A)Correlations establish causation.
• B)Correlations help us to identify relationships that provide highly useful information.
• C)Many colleges have formulas that us multiple correlations to decide which applicants have the best chances for success.
• D)A useful tool for interpreting correlations involves calculating the percent variance.

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Definitions:

Peak

The highest point between the end of an economic expansion and the start of a contraction in a business cycle.

Unemployment

The condition of being without a job while actively looking for employment and being willing to work.

Recession(s)

A short-term economic decline phase, characterized by a slowdown in trading and industrial activities, generally identified by two sequential quarters of GDP fall.

1990s

The decade known for its technological advancements, economic globalization, and the end of the Cold War, influencing global politics and culture.