Professor Johnston Has Found a Strong Positive Correlation Between Wearing

question 41

Multiple Choice

Professor Johnston has found a strong positive correlation between wearing neckties and the frequency of strokes (r = 0.89) .He thinks that the necktie reduces blood flow to the brain,preventing the brain from receiving enough oxygen.Professor Johnston and his associates claim to have proven that wearing neckties causes strokes.What error has Professor Johnston made?

• A)An r = 0.89 is not a very large r-value.
• B)Professor Johnston is drawing a causal conclusion from correlational findings.
• C)Not everyone who wears a necktie wears it very tight.
• D)Professor Johnston should know that there are other ways for blood to reach the brain.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant irrespective of the level of goods or services produced, such as rent, salaries, or loan payments.

Output

The total amount of goods and services produced by a firm or country.

Average Fixed Costs

The fixed expenses of a business divided by the number of units produced, demonstrating how those costs dilute with increased production.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of earning income from these resources elsewhere.