A Reporter Studied the Causes of a Fire to a House,and

question 1

Multiple Choice

A reporter studied the causes of a fire to a house,and established a strong positive association between the damages $$\text { (in dollars) }$$ and the number of firefighters at the scene.Describe three different possible cause-and-effect relationships that might be present.

• A)Perhaps the damages cause more firefighters at the scene,firefighters cause more damages at the scene,or both could be caused by a lurking variable such as the type of the building.
• B)There is only one cause-and-effect relationship: firefighters cause more damages at the scene.
• C)There are only two cause-and-effect relationships: damages cause more firefighters at the scene,or firefighters cause more damages at the scene.
• D)There is only one cause-and-effect relationship: the damages cause more firefighters at the scene.
• E)Perhaps the damages cause more firefighters at the scene,firefighters cause more damages at the scene ,or both could be caused by a lurking variable such as the size of the blaze.

---

Definitions:

Alternative Investments

Assets that do not fall into the conventional investment categories such as stocks, bonds, and cash, examples include real estate, commodities, and hedge funds.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Differential Income

The difference in income between two alternatives, used in decision-making processes to determine the best option.

Alternative Use

Refers to the potential other uses or applications of an asset or resource outside its current employment.