A statement is made about correlation. State whether the correlation is positive or negative and whether the correlation ismost likely due to coincidence, a common underlying cause, or a direct cause.
-As the temperature has been rising over the past three months, the Dow Jones Industrial Average has also been rising.
A)Positive correlation; direct cause
B)Positive correlation; coincidence
C)Positive correlation; common underlying cause
D)Negative correlation; coincidence

Question

Quizplus · Accepted Answer

The correlation between rising temperature and the Dow Jones Industrial Average increasing is positive because both are moving in the same direction. However, there's no direct causal relationship between weather and stock market performance, making it most likely a coincidence.

A Statement Is Made About Correlation