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Using Examples from Everyday Life, Explain Why a Correlation Between

question 5

Essay

Using examples from everyday life, explain why a correlation between two variables does not prove a cause and effect relation between the variables.


Definitions:

Variance

A measure of the dispersion or spread of a set of values, calculated as the average of the squared deviations from the mean of the set.

Index Funds

Mutual funds or exchange-traded funds (ETFs) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.

PHStat

An Excel-based statistical analysis software package designed to make the understanding and application of statistics easier for users.

Decision Nodes

Points within a decision-making process or decision tree where choices between different actions must be made.

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