Statement I: The company has decided to cut down on its advertising budget. Statement II: Sales have remained steady for three consecutive quarters.
Correct answer: D. Both are effects of a common cause
- A. I is the cause and II is its effect
- B. II is the cause and I is its effect
- C. Both are unrelated
- D. Both are effects of a common cause
Explanation
The correct answer is that both statements are effects of a common cause. The company might have decided to cut down on its advertising budget because sales have been steady due to other factors, such as a strong market position, high brand recognition, or overall economic stability. Thus, the decision to reduce advertising and the steady sales are not direct causes of each other but rather outcomes of these external conditions. Options A and B suggest direct causation, which is not supported by the information provided. Option C ignores the possibility of a shared underlying factor influencing both statements.
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About Cause and Effect
Cause and effect questions examine whether one event produces another, whether both arise from a common factor, or whether their connection is only coincidental. They involve identifying preceding and resulting events, separating correlation from causation, and judging whether the stated evidence supports a direct, possible or unlikely relationship.
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