Data from a small bookstore are shown in the accompanying table. A larger firm i

Question

Data from a small bookstore are shown in the accompanying table. A larger firm is considering acquiring the bookstore. An analyst for the firm notes that the relationship of sales to the number of sales people working is a strong positive linear association, with no outliers. He suggests that when they acquire the store they should hire more people because that will drive higher sales. Is his conclusion justified? What alternative explanations can you offer? EEB Click the icon to view the data table. Choose the correct answer belovw ? A Correlation demonstrates causation. The analyst's argument is that the sales staff causes sales. However, the data may reflect the store hiring more people as sales O B. His conclusion is justified. There is no need for an alternative explanation. O C. Correlation does not demonstrate causation. The analyst's argument is that the sales staff does not cause sales. However, the data may reflect the store hiring more increase, so any causation would run the other way. people as sales increase, so any causation would run the other way. D. Correlation does not demonstrate causation. The analyst's argument is that the sales staff causes sales. However, the data may reflect the store hiring more people as sales increase, so any causation would run the other way

Explanation / Answer

Here the correlation is mistakenly considered as a measure of causation whereas in actual, correlation never implies causation. Hence,

Option D is correct.

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