Question

When using simple regression analysis, if there is a strong correlation between the independent and dependent variable, then we can conclude that an increase in the value of the independent variable causes an increase in the value of the dependent variable.
True or False.

Answer 1

Answer:

False

Explanation:

When interpreting correlation, it is important to remember that correlation does not equal causation. We would only be able to conclude that a part of the variation in one of the variables (as measured by its variance) can be considered as being due to its relationship with the other variable.