Question

1.) Give an example of two variables with a strong? correlation, where each variable does not cause the other.

Choose the correct answer below.

A. A? company's quarterly earnings reports and their stock performance

B. Long weekends and highway traffic on Friday afternoon

C. The price of beef and the price of dairy products

D. Monthly average temperature and snowfall precipitation

Answer 1

B. Long weekends and highway traffic on Friday afternoon

Explanation:

Correlation is used to measure the strength of the relationship among variables. The variables are said to be strongly correlated if their relationship is strong.

Here, In option (A) Company's quarterly earnings reports and Stock performance has usually little correlation between them. So, this option is not true.

On long weekends people usually go for a family trip or their own home so it results in more highway traffic on Friday afternoon. Hence, there is a strong correlation between Long weekends and highway traffic.

As the price of beef and dairy product does not depend on each other. So, it doesn't have a strong correlation.

Similarly, Option (D) is also not true.