Correlation coefficient
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Describe the error in the stated conclusion.
Given: There is a linear correlation between annual personal income and years of education.
Conclusion: More education causes a person's income to rise.
Choose the correct answer below.
A. the error in the stated conclusion is that if there is no linear correlation, there is no correlation at all. There might be some other correlation that is not linear.
B. the error in the stated conclusion is that a correlation among data based on averages applies to individuals. Averages suppress individual variation and may inflate the correlation coefficient.
C. The error in the stated conclusion is that correlation implies causality. Both variables might be affected by some other variable lurking in the background.
D. There is no error in the stated conclusion.
See attached file.
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Solution Summary
Correlation coefficient between education and income is examined. The expert describes the error in the stated conclusion.
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