Regarding Correlations,which of the Following Statements Is FALSE

question 45

Multiple Choice

Regarding correlations,which of the following statements is FALSE?

• A) It is impossible for two correlated variables to have a cause-and-effect relationship.
• B) We cannot conclude, solely on the basis of correlation, that a causal link exists.
• C) An experiment must be performed to establish a causal relationship.
• D) Often, two correlated measures are related as a result of the influence of a third variable.

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Definitions:

Cost Of Goods Purchased

The total expense incurred by a company to buy the goods it has purchased for resale, including shipping and handling fees.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting the efficiency of a company in managing its operations and costs.

Operating Expenses

Costs incurred during the normal operations of a business, excluding the cost of goods sold.

Sales

The transactions involving the exchange of goods or services for money, constituting the primary revenue source for most businesses.