Over the past decade there has been a strong positive correl

Over the past decade, there has been a strong positive correlation between teacher salaries and prescription drug cost.

(a) Do you think paying teachers more causes prescription drugs to cost more? Explain.
(b) What lurking variable might be causing the increase in one or both of the variables? Explain.

Solution

The point is they really have nothing in common except they have both increased over time. A correlation does not imply a cause and effect relationship.
a.) No

b.)Rising cost of living might be lurking variable causing both variables increase.

Over the past decade, there has been a strong positive correlation between teacher salaries and prescription drug cost. (a) Do you think paying teachers more ca

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