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Statistics - Correlation and Causation - Example

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Does correlation equal causation? Does the strength of correlation depend on the direction? What is the meaning of a zero correlation? Explain your answers. Provide an example of variables you feel might be correlated in your place of business. For instance, hours of studying would be correlated to scores received on a test.

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(a) In correlation analysis, we calculate the correlation coefficient which is a measure of the degree of covariablity between X and Y. Correlation is merely a tool to ascertain the degree of relationship between X and Y. We can not assign cause and effect relationship between X and Y. ...

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Correlation and causation are examined. A complete, neat and step-by-step solution is provided in the attached file.

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Statistics: correlation and causation

What is correlation?

How is correlation used to understand the relationship between two variables?
What is the difference between positive and negative (inverse) correlation?

What is the correlation coefficient (r-value)?

What values can the correlation coefficient (r-value) have and what do these values reveal about the relationship they describe?

How is SPSS used to calculate the correlation (also called the Pearson Correlation)?

How do you identify the dependent and independent variables in a correlation analysis?

Does correlation imply causation?

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