kristhedolphin
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A recent survey of businesses found that companies with larger gross revenues typically spend more on transportation costs. What does the survey suggest about the relationship between these two quantities?

F Causation, without correlation

G Correlation, without causation

H Correlation, with causation

J Neither correlation nor causation

Verified Answer :

G. There is definitely observable correlation. However, causation is not implied. In fact, there is probably a confounding variable: business scale. Larger business generate more revenue and have higher transportation cost. The correlation itself definitely does not imply companies pay more on transportation BECAUSE they have larger revenues.

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