Two-Variable Relationships, Correlation, Causation and Regression Intuition
Question 1 of 30
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A retailer tracked monthly marketing spend and sales revenue (both in thousands).
Month
Marketing spend
Sales revenue
1
10
78
2
12
82
3
14
90
4
16
95
5
18
99
6
20
106
Based on this table alone, which conclusion is most defensible?
Select one option.
A
Marketing spend causes sales to rise by a constant amount each month.
B
Sales cause marketing spend to rise, because revenue is higher in later months.
C
Marketing spend and sales show a positive association, but causation cannot be concluded from the table alone.
D
There is no relationship because both variables change over time for unrelated reasons.
E
Marketing spend must be the only driver of sales because both increase steadily.
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