The CA Hub

PRC-2 · Chapter 10 · Question 11 of 60

Why is it important to remember that a high correlation coefficient does not prove causation?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) Because scatter diagrams might visually indicate a relationship where there fundamentally is none in reality.

Explanation

Statistical correlation simply measures how variables move together. A scatter diagram might mathematically indicate a strong relationship where there is no actual logical causation between the events.

All 60 questions in Chapter 10Correlation and Regression MCQs with answers

More Correlation and Regression MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →