Concept explainers
To explain: The validity of the argument that a state should raise educational spending to increase per capita income.
Answer to Problem 11WE
The argument is not valid. The cause-and-effect relationship does not imply.
Explanation of Solution
Given information:
The
Consider the provided situation that correlation coefficient is 0.80 between annual per capita income and annual spending on education per student.
The argument is state should raise educational spending to increase per capita income.
It is known that when the correlation coefficient is close to 1 there is a high
But this does not mean that both the variables that is annual per capita income and annual spending on education per student are related to each other.
There is no cause-and-effect relationship.
Because annual per capita income depends on many other factors like GDP, transparency and population of the country.
It can’t be said that a state should raise educational spending to increase per capita income.
Thus, the argument is not valid. The cause-and-effect relationship does not imply.
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