What Does the Third-Variable Problem Indicate

question 110

Multiple Choice

What does the third-variable problem indicate?

• A)The three variables are all causally related to one another;each is a cause of the others.
• B)The correlation between any two of the variables must be established before another correlation can be computed.
• C)Two of the variables are correlated with each other only because each is causally related to a third variable.
• D)Changes in one variable are producing changes in another variable.

---

Definitions:

Accountant

A professional who is responsible for keeping and interpreting financial records, ensuring accuracy and compliance with laws.

Economist

A professional who studies the production, distribution, and consumption of goods and services, focusing on economic theories and practices.

Interest

The charge for obtaining funds, often shown as a percentage of the loan amount.

Explicit Cost

Direct, out-of-pocket expenses incurred in the operation of a business, such as wages or rental payments.