Which of the Following Statements Is the Least Accurate Concerning

question 61

Multiple Choice

Which of the following statements is the least accurate concerning correlation analysis?

• A) Correlation does not imply causation.
• B) The correlation coefficient captures only a linear relationship.
• C) The correlation coefficient may not be a reliable measure when outliers are present in one or both of the variables.
• D) The correlation coefficient describes both the direction and strength of the relationship between two variables only if the two variables have the same units of measurement.

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Definitions:

Quantity Change

A variation in the amount of goods or services produced, supplied, or demanded in the market.

Government Policy

The course of action or set of regulations adopted by a government to accomplish specific goals in the public interest.

Market Quantity

The total amount of a product or service that is available for purchase in a market at any given time.

Leading Questions

Leading questions are questions that suggest the answer or contains the information the examiner is looking to have confirmed.