For each case below, state whether you think the correlation is positive or negative. Also state whether the correlation is due to a direct cause, common underlying cause or a coincidence. a. Correlation between demand for breakfast cereal and demand for bread. The correlation is likely? The correlation is likely due to O a direct cause because an increase in demand for breakfast cereal would likely cause an increase in demand for bread O a common underlying cause that would affect both demand for breakfast cereal and demand for bread O a direct cause because an increase in demand for breakfast cereal would likely cause a decrease in demand for bread O a coincidence because it is unlikely that an increase in demand for breakfast cereal would cause demand for bread to change

For each case below, state whether you think the correlation is positive or negative. Also state whether the correlation is due to a direct cause, common underlying cause or a coincidence. a. Correlation between demand for breakfast cereal and demand for bread. The correlation is likely? The correlation is likely due to O a direct cause because an increase in demand for breakfast cereal would likely cause an increase in demand for bread O a common underlying cause that would affect both demand for breakfast cereal and demand for bread O a direct cause because an increase in demand for breakfast cereal would likely cause a decrease in demand for bread O a coincidence because it is unlikely that an increase in demand for breakfast cereal would cause demand for bread to change

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

b. Correlation between temperature outside in the summer and the amount of ice cream sold.
The correlation is likely?
The correlation is likely due to
O a direct cause because an increase in temperature outside in the summer would likely cause an increase in
the amount of ice cream sold
O a coincidence because it is unlikely that an increase in temperature outside in the summer would cause the
amount of ice cream sold to change
O a common underlying cause that would affect both temperature outside in the summer and the amount of
ice cream sold
O a direct cause because an increase in temperature outside in the summer would likely cause a decrease in the
amount of ice cream sold

For each case below, state whether you think the correlation is positive or negative. Also state whether the correlation is due
to a direct cause, common underlying cause or a coincidence.
a. Correlation between demand for breakfast cereal and demand for bread.
The correlation is likely?
The correlation is likely due to
O a direct cause because an increase in demand for breakfast cereal would likely cause an increase in demand
for bread
O a common underlying cause that would affect both demand for breakfast cereal and demand for bread
O a direct cause because an increase in demand for breakfast cereal would likely cause a decrease in demand
for bread
O a coincidence because it is unlikely that an increase in demand for breakfast cereal would cause demand for
bread to change

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