A Spurious Correlation Refers to a Situation Where

question 17

Multiple Choice

A spurious correlation refers to a situation where:

• A)two variables are related through their correlation with a third variable.
• B)the correlation coefficient between two variables cannot be estimated.
• C)there is direct causal relationship between two variables but tests for correlations reject this relationship.
• D)the correlation between two variables is positive till the sample size reaches a threshold, and negative after the sample size crosses the threshold.

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Definitions:

Free Trade

Free trade is a policy of minimal restrictions on the international exchange of goods and services, allowing goods to move freely across borders.

Partially Valid

Refers to something being correct or effective only to a certain extent or in specific circumstances.

Economic Argument

a reasoned discourse or debate that involves the analysis of economic principles, policies, or outcomes.

Import Restrictions

Measures implemented by a country to control the quantity of goods coming into the country from abroad, which can include tariffs, quotas, and other barriers.