Select each of the following statement (s) that accurately describes the explana

Question

Select each of the following statement (s) that accurately describes the explanatory power of the correlation coefficient. Statement I. Causality is an outcome of correlation. Statement ll. A correlation above 1.80 implies causality. Statement lll. Correlation is insufficient to conclude causality Statement IV. Causality can be inferred from a correlation above .50. O A. Statement l and Ill are true O B. Statement III is true. O C. Statement l and II are true O D. None of the statements are true

Explanation / Answer

SOlving first 4

1) Statement 3 is correct. Correlation never implies causality.

2) Critical value for one sided 95% test is 1.645. Hence, true

3) Y^ is defined as b0 +b1*x

4) All of these are false. The correct formula is =T.INV(0.95,44)

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