Question

The National Insurance Crime Bureau reports that Honda​ Accords, Honda​ Civics, and Toyota Camrys are the cars most frequently reported​ stolen, white Ford​ Tauruses, Pontiac​ Vibes, and Buick LeSabres are stolen least often. Is it reasonable to say that​ there's a correlation between the type of car you own and the risk that it will be​ stolen

Answer 1

Answer:

It is not reasonable to say there is a correlation because it is categorical data. However if it was quantitative data, correlation doesn’t always mean causation, because there might be athird variable (lurking variable) that may have a better explanation for the correlation.

Explanation:

Is it not reasonable to say that​ there's a correlation between the type of car you own and the risk that it will be​ stolen because it is categorical data. However if it was quantitative data, correlation doesn’t always mean causation, because there might be a third variable that may have a better explanation for the correlation and it might as well means that the third-lurking variable affects the correlation; for example, those cars that are most frequently reported stolen may simply be the cars that are more commonly sold because they are cheaper than the cars that are stolen least often, and thus have a higher chance of being exposed to thieves.