Suppose economists at the World Bank discover a positive correlation between family income and female education levels in developing countries. We can say that
A)there is a causal relationship between family income and female education.
B)the correlation is inconsistent with a theory that an increase in female education levels causes an increase in family income.
C)an increase in family income causes an increase in female education levels.
D)the observed correlation is consistent with a theory that an increase in female education levels causes an increase in family income.
E)an increase in female education levels causes an increase in family incomes.

Question

Quizplus · Accepted Answer

The observed positive correlation between family income and female education levels in developing countries is consistent with a theory that an increase in female education levels causes an increase in family income. This suggests that investing in female education can be an effective strategy for promoting economic development and reducing poverty in developing countries. It is important to note, however, that correlation does not necessarily imply causation, and further research is needed to establish a causal relationship between family income and female education levels.

Suppose Economists at the World Bank Discover a Positive Correlation