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High correlation implies causation

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Reference no: EM131744755

What's wrong? Each of the following statements contains an error. Describe each error and explain why the statement is wrong.

(a) High correlation implies causation.

(b) An outlier will always have a small residual.

(c) If we have data at values of x equal to 1, 2, 3, 4, and 5, and we try to predict the value of y using a least-squares regression line, we are doing an extrapolation.

Reference no: EM131744755

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