Question

A manager finds a moderate negative correlation between the number of computer sales and the number of microwave sales in his store.

Which statement is true?

A) The correlation is most likely due to a lurking variable.
B) The correlation is most likely causation.
C) The correlation is most likely a coincidence.

Answer 1

C) The correlation is most likely a coincidence.

Explanation:

Correlation is described as interdependence of two entities on each other. The occurrence or change of one entity, changes the other entity as well.

Here, in the given question, we have been told that a manager finds a moderate negative correlation between the number of computer sales and the number of microwave sales in his store.

A computer and a microwave are completely separate entities. The two things are used for completely different purposes.

They have nothing in common and their increase in sales or decrease in sales are not based on each other.

Therefore, it just might be a coincidence for the manager to notice such correlation. So, option C is correct.

Answer 2

C) The correlation is most likely a coincidence.

Explanation:

By general comprehension of the population and their buying habits, I don't think we can really establish a relation between the sales of computers and the microwaves in a general manner. If the store is located near a university residence and it's September, there might be a link to be done, but in general, no.

It's not like some enters a store and says "Ok, will I buy a microwave or a computer today?". Those are two totally different products, with different clienteles and different needs.