Understanding Correlation in Statistics
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Questions and Answers

When does correlation imply causation?

  • 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

What does 'correlation' refer to in statistics?

  • 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

Why are correlations considered useful in statistics?

  • 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

Under what condition are random variables considered dependent?

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

What is the informal meaning of 'correlation' in statistics?

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

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