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Smith and Anderson is a mid-size accounting firm with head offices in Toronto, ON. Each year, they recruit new junior accountants from undergraduate programs in

Smith and Anderson is a mid-size accounting firm with head offices in Toronto, ON. Each year, they recruit new junior accountants from undergraduate programs in the greater Toronto area. The firm makes offers to applicants based on their GPA and their interpersonal skills, which are assessed during written and in-person interviews. Recently, the firm was surprised to find that, among new hires, these skills were negatively correlated.

Which of the following could explain this relationship, given the information provided above

  1. The hiring process removes all candidates with low rankings in both GPA and interpersonal skills, inducing a negative correlation among the remaining candidates.
  2. The firm's hiring process imposes a selection bias for low-quality candidates, among whom GPA and interpersonal skills are negatively correlated.
  3. GPA and interpersonal skills are negatively correlated within the general population.

Group of answer choices

Statement 2.

Statement 1.

Statement 1+2.

Statement 3.

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