Which Is True? I. Random Scatter in the Residuals Indicates a Model with a Model

Which is true?
I. Random scatter in the residuals indicates a model with high predictive power.
II. If two variables are very strongly associated, then the correlation between them will be near +1.0 or -1.0.
III. The higher the correlation between two variables the more likely the association is based in cause and effect.

A) I only
B) none
C) II only
D) I, II, and III
E) I and II only

Correct Answer:

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