Which of the Following Statements Can Explain Why an Association

question 84

Multiple Choice

Which of the following statements can explain why an association between Event A and Event B may not imply causality from A to B?

• A)​The observed association may be coincidental.
• B)​There may be a third variable that is responsible for causing both events.
• C)​Causality may run from Event B to Event A instead of in the opposite direction.
• D)​All of the above can explain why an association between Event A and Event B may not imply causality from A to B.

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Definitions:

Depreciates

The process by which the value of an asset decreases over time, usually due to wear and tear or obsolescence.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time due to use and wear and tear.

Equipment

Tangible assets used in operations, such as machinery and office furniture, which have a useful life of more than one accounting period.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting the loss of value over time.