The Figure Below Shows the Association Between Life Expectancy and Infant

question 22

Multiple Choice

The figure below shows the association between life expectancy and infant mortality for several different countries.Also shown is the equation and correlation from a regression analysis.What is the correct conclusion to draw from the figure?

• A)Countries that have low life expectancies and high infant mortality rates seem to have less regard for the sanctity of human life.
• B)While there appears to be a very strong association,there is probably not a cause-and-effect relationship between infant mortality and life expectancy.Access to basic health care is probably a lurking variable that drives both life expectancy and infant mortality.
• C)Those countries with low life expectancies clearly have no regard for children or expectant mothers.
• D)The association must be coincidental.I would expect the association to have a positive slope,not the negative one illustrated above.
• E)High infant mortality is causing reduced life expectancy,probably because of the increased emotional stress exerted on parents who have lost a child at birth.

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Definitions:

Cost Of Capital

The required return necessary to make a capital budgeting project, such as building a new plant, worthwhile.

Cost Of Labor

The total cost incurred by employers to compensate employees, including wages, benefits, and taxes associated with employing labor.

Total Cost

The sum of all costs incurred by a business in producing a certain level of output, including both fixed and variable costs.

Cost Of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.