Which of the Following Statements About a High Correlation Between

question 86

Multiple Choice

Which of the following statements about a high correlation between two variables s and t is FALSE?

• A)s may cause t.
• B)t may cause s.
• C)They both may be affected by a third variable.
• D)The correlation establishes an economically plausible relationship between costs and their cost drivers.
• E)The correlation may be due to random chance.

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Definitions:

Standard Error

A measure of how much sample means of a given data set are expected to vary, serving as a statistical indicator of precision.

Margin of Error

A measure of the range of values below and above the sample statistic in a confidence interval; it quantifies uncertainty in estimates.

Standard Error

A measure of the variability or dispersion of a sample statistic from the population parameter.

Confidence Interval

A set of values, obtained from sample data, that probably includes the value of an unspecified population parameter, given a certain confidence level.