- Suppose that an examination of data reveals a positive correlation
between the demand for new homes and the price of lumber.
Which of the following conclusions can be correctly inferred from
the existence of this correlation? Why?
a. An increase in the demand for homes causes an increase
in the price of lumber.
b. The observed correlation is consistent with a theory that
an increase in demand for new homes causes an increase
in the price of lumber.
sean pound
(Sean Pound)
#1