1) Does correlation equal causation? Does the strength ofcorrelation depend on the direction of the relationship? What is the meaning ofa zero correlation? Explain your answers. 2) Three possible...

Does correlation equal causation? Does the strength of correlation depend on the direction of the relationship? What is the meaning of a zero correlation? Explain your answers.
Answer:
Causation refers to the relationship that exists between cause and its corresponding effect. Correlation does not imply causation emphasize that correlation between two variables does not imply that one causes the other (though correlation is important for linear causation in the absence of any third variable and can indicate possible causes). For Example, Suppose eating breakfast is correlated with the success in school for elementary school children. It would be easy to conclude that eating breakfast causes students to be better learners. However, those who don’t take breakfast are more likely to be absent and abseentism play a significant role in their poor performance. Correlation is a statistical measurement of relationship between two variables. The strength of correlation does not depend on the direction of the relationship. If the score of strongly agree is 5 and strongly disagree is 1, we will get one correlation value and when re-versed the same value would be obtained. The strength of correlation remains unaffected but the direct has changed. Correlation ranges from -1 to + 1. A zero correlation indicates there is no relationship between the variables. Also, when the data is random and when there is perfect quadratic relationship between the variables.
Three possible correlation distributions are positive, negative and zero. Explain each of these and provide an example of each.
Answer:
i) Positive correlation – Positive correlation is the relationship between the two variables moving in the same directions. It exists when one variable increases, the other variable also increases. Also, when one variable decreases the other variable also decreases. Example – Price and supply are positively correlated. When price increases, the supply also increases and vice versa.
ii) Negative correlation - Negative correlation is the relationship between the two variables moving in the...