A researcher finds a correlation of 0.40 between personal income and the number of years of college completed. Based upon this finding he can conclude that
A)a person who attended four years of college will have an annual income of rs. 40,000
B)more years of education causes higher income
C)personal income is a positively skewed variable
D)more years of education are associated with higher income

Question

Quizplus · Accepted Answer

The correlation of 0.40 indicates a positive relationship between the number of years of college completed and personal income, meaning as one increases, so does the other. However, correlation does not imply causation, nor does it provide specific income values or indicate the distribution shape of personal income.

A Researcher Finds a Correlation of 0