Statistics: Introduction · Class 11 · CBSE · Commerce Economics

Which conclusion is most appropriate when statistical data show that areas with higher literacy rates also have higher average incomes?

Practice question from Statistics: Introduction (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.

hard · MCQ · Q-0B1638

Which conclusion is most appropriate when statistical data show that areas with higher literacy rates also have higher average incomes?

  1. A.Higher literacy definitely causes higher income in every area.
  2. B.The two variables are associated in the observed data, but other factors may also explain the relationship.Correct answer
  3. C.Literacy and income cannot be compared because both are economic variables.
  4. D.The data are useless unless they produce identical values for all areas.

Solution

Statistics can reveal association or relationships between variables, but statistical association alone does not establish a cause-and-effect relationship. Other factors, such as employment opportunities or public infrastructure, may influence both literacy and income.

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