In the context of scatterplots and correlation, what is a spurious correlation?

• A. An observed association between two variables that is not due to a direct causal relationship, often arising from coincidence or a lurking (confounding) variable
• B. A relationship where an increase in one variable causes a proportional increase in the other variable
• C. A correlation that must be positive because both variables tend to increase over time
• D. A correlation that occurs only when there is no outlier in the scatterplot

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of correlation in statistics, which measures the strength and direction of a linear relationship between two variables.
2. Step 2: Recognize that a spurious correlation refers to an observed association between two variables that does not arise from a direct causal relationship.
3. Step 3: Identify that such correlations often occur due to coincidence or the presence of a lurking (confounding) variable that influences both variables simultaneously.
4. Step 4: Differentiate spurious correlation from genuine causal relationships, where changes in one variable directly cause changes in the other.
5. Step 5: Conclude that a spurious correlation can mislead interpretations because it suggests a relationship that is not truly causal or meaningful.