What Is the Third-Variable Problem in Reference to Correlational Studies

question 74

Multiple Choice

What is the third-variable problem in reference to correlational studies?

• A)Third variables act causally on some other variables,but not on all other variables.
• B)Each variable in a correlation exerts a causal influence on the other.
• C)A causal relationship between two variables cannot be inferred from the correlation between two variables.
• D)Correlations can be caused only by another (third)variable.

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Definitions:

Weak Axiom

A principle in consumer choice theory stating that if a consumer prefers bundle A over bundle B when both are available, then the consumer should not prefer B over A when prices change but A and B remain affordable.

Revealed Preferences

A theory that determines preferences by observing consumer choices and behaviors rather than asking them directly.

Francs

A currency formerly used in France and other countries, replaced by the euro in many areas.

Strong Axiom

Often refers to the strong axiom of revealed preference, which is a more stringent condition than the weak axiom, ensuring choices are consistent across different sets of available options.