Re: DSE 2015 answer

Posted by JMKeynes on Jun 06, 2016; 11:07am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2015-answer-tp7600806p7601259.html

Hey there Qwert, remember, Correlation does not imply Causation. It is simply a degree of the linear relationship between two variables. According to A, it is implying that income causes savings to change which is wrong. Similar argument for B. And since r=.2, very low, the plot will not lie on a straight line. So D is out of the question.