Question

Over the past decade, there has been a strong positive correlation between teacher salaries and prescription drug cost.

(a) Do you think paying teachers more causes prescription drugs to cost more? Explain.
(b) What lurking variable might be causing the increase in one or both of the variables? Explain.

Answer 1

Here' my interpretation of the Qn. If it's not too much trouble perused the appropriate response in detail.

a. No, this may not be going on. We have the idea of hiding or inert variable. In spite of the fact that you see a relationship between's the instructor compensations and presc. medicate cost, there might be no casuality.

b. As said in the first section, a nearness of hiding variable may clarify this.

The prowling variable might be high GDP development rate of the nation. HIgher GDP may mean higher interest of good educators to teach youngsters, prompting increment in thier pay rates. HIgher GDP may likewise mena greater expense of prescription now, since individuals are prepared to pay for better medicare.

Along these lines, GDP is the sneaking variable, prompting increment in the other 2 factors