Understanding Correlation in Statistics

When variables are linearly related

When there is a predictive relationship between variables

Correlation does not imply causation (correct)

When extreme weather causes people to use more electricity for heating or cooling

Only linear relationships between two random variables

Probabilistic independence of random variables

Any statistical relationship between two random variables or bivariate data (correct)

Causal relationship between two random variables

Because they indicate a predictive relationship that can be exploited in practice (correct)

Because they only refer to linear relationships

Because they ensure probabilistic independence of random variables

Because they always imply a causal relationship

<p>$P(A \cap B) &lt; P(A)P(B)$</p> Signup and view all the answers

<p>'Correlation' is synonymous with dependence</p> Signup and view all the answers