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Unformatted text preview: y = goods imported in a given year ($ billions) z = general economic conditions in a given year Confounding Two variables are confounded when their effects on a response variable cannot be distinguished from each other. The confounded variables may be either explanatory variables or lurking variables. Example #1 x = whether a person regularly attends religious services y = how long the person lives z = healthy living habits Example #2 x = the number of years of education a worker has y = the worker’s income z = ability 2...
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- Confounding, unbroken line→ cause-and-effect