The Presence of Association Between Two Variables Does Not Necessarily

question 10

Multiple Choice

The presence of association between two variables does not necessarily imply causation for the following reason(s) :

• A) the association between two variables may result simply from pure chance
• B) the association between two variables may be the result of the influence of a third common factor
• C) both variables may be the cause and the effect at the same time
• D) a and b
• E) a,b,and c

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Definitions:

Parent Company

A corporation that owns enough voting stock in another corporation to control its board of directors and therefore its policies and management.

Subsidiary

A company that is controlled by another entity, known as the parent company, through ownership of more than half of its voting stock or through other means.

Consolidated Net Income

The total profit of a parent company and its subsidiaries after all expenses, including those of subsidiary companies, are subtracted.

Noncontrolling Interest

A stake in a company owned by minority shareholders that do not bestow them control over the company.