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Correlation, causation, and lurking Variables

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Over the past decade, there has been a strong positive correlation between teachers salaries and prescription drug cost.

a) Do you think that paying teachers more causes prescription drugs to cost more? Explain.

b) What lurking variables might be causing the increase in one or both of the variables? explain.

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This solution discusses correlation, causation, and lurking Variables.

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Lurking Variables
Over the past decade, there has been a strong positive correlation between teachers' salaries and prescription drug cost.

a) Do you think that paying teachers more causes prescription drugs to cost more? Explain.

No, I don't think paying teachers more causes prescription drugs to cost more. Simply because a correlation exists between two variables it does ...

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