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Correlations of Spending vs Saving, Street cops vs Crime

Give a plausible explanation for the following correlations:

a. There is a strong relationship between the amount of money people spend and the amount people save (in other words, people who spend more tend to save more). Does this mean that you can improve your life savings by spending more money? Explain how this correlation is true.

b. There is a strong relationship between the number of cops on our streets and the number of reported crimes. Does this mean that cops commit crimes or that criminals are more bold when cops are on the streets? Explain how this correlation is true.

Solution Preview

(1) At first glance, it appears strange that there should be a strong degree of correlation between the amount of money people save and that people spend. One possible explanation for this could be that, to do both (spending money and saving money) you must have a lot of money in the first place. If you have too less money, you will concentrate on saving (for the uncertain future) and if you have just enough you ...

Solution Summary

A comparison between spending vs. saving and street cops and crime is determined. The solution is 304 words in length.

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