Which of the Following Statements Is the Leastaccurate Concerning Correlation

question 104

Multiple Choice

Which of the following statements is the leastaccurate concerning correlation analysis?

• A) Correlation does not imply causation.
• B) The correlation coefficient captures only a linear relationship.
• C) The correlation coefficient may not be a reliable measure when outliers are present in one or the both of the variables.
• D) The correlation coefficient describes both the direction and strength of the relationship between two variables only if the two variables have the same units of measurement.

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Definitions:

Production

The process of creating goods or services using inputs like labor, capital, and natural resources.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced using limited resources efficiently.

Normative Statements

Statements that express value judgments or opinions about what ought to be, rather than facts that can be tested or verified.

Facts

Pieces of information that are verifiably true and can be proven with evidence or observation.