Assume there is a positive linear correlation between the variable R (Return rate in percent of a financial investment) and the variable t (age in years of the investment) given by the regression equation R= 2.3t + 4.8  A. Without further information, can we assume there is a cause-and-effect relationship between the return rate and the age

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Assume there is a positive linear correlation between the variable R (Return rate in percent of a financial investment) and the variable t (age in years of the investment) given by the regression equation R= 2.3t + 4.8 

A. Without further information, can we assume there is a cause-and-effect relationship between the return rate and the age of the investment?

B. If the investment continues to grow at a constant rate, what is the expeted return rate when the investment is 7 years old?

C. If the investment continues to grow at a constant rate, how old is the investment when the return rate is 30%?

 

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