The Current Population Survey is based on a large random sample of the US population. Among other things, the survey captures education and income values for the respondents. Numerous studies of this data over many years have shown that there is a high positive correlation between educational attainment and income. Identify all of the true statements among the following. (a) The true correlation is very possibly zero. The observed high correlations are just chance observations due to the random nature of the data. (b) We can conclude that higher income causes higher educational attainment. (c) There may be a lurking variable that causes both higher educational attainment and higher income. (d) We can conclude that higher educational attainment causes higher income.
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The observed high correlations are just chance observations due to the random nature of the data. This statement is unlikely to be true. If numerous studies over many years have consistently shown a high positive correlation between educational attainment and Show more…
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