Assume there is a relationship between two variables and the other-variables-held constant assumption (ceteris paribus) is relaxed. We would expect that the line representing this relationship would:
A) change from inverse to direct.
B) change from direct to inverse.
C) have a greater number of data points.
D) change its location.

Question

​ Assume there is a relationship between two variables and the other-variables-held constant assumption (ceteris paribus) is relaxed. We would expect that the line representing this relationship would:
A) ​change from inverse to direct.
B) ​change from direct to inverse.
C) ​have a greater number of data points.
D) ​change its location.

Quizplus · Accepted Answer

When the ceteris paribus assumption is relaxed, allowing other variables to change, the original relationship between the two variables might be influenced by these additional factors. This can cause the line representing the relationship to shift its position to reflect the new influences, rather than merely changing the nature of the relationship (from inverse to direct or vice versa) or simply adding more data points.

​ Assume There Is a Relationship Between Two Variables and the Other-Variables-Held

Assume There Is a Relationship Between Two Variables and the Other-Variables-Held