A.) Regression and correlation are the most used and most abused tools in research. People are often quick to jump to the conclusion that if a relationship exists between two variables, one must cause the other. In reality, there are many reasons why two variables can be related without causality.
Give a plausible explanation for each of the following correlations:
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.
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.
B.) Many alleged studies are misleading in that the conclusions are often based on undisclosed premises. Parenting books state that an advantage to breastfeeding is that it makes women healthier; what is not stated is that women who breastfeed tend to follow stricter diets, and it is the diets that actually makes them healthier.
If you looked at statistics for the number of tires replaced in a given year, would you be surprised to find out that Toyota Camry tops the list for wearing out tires? It shouldn't since it is the most popular car in America. And in 2000, Senator Tom Daschle stated that the majority of vendors at gun shows do not do background checks on their customers, which is true, but what he failed to mention is that the majority of vendors at gun shows do not sell guns. They sell food, t-shirts, souvenirs, and the like, items for which a background check would be unnecessary. Nonetheless, this quasi-truth aroused voter outrage.
(i) It may be income that largely affects spending and savings. If someone has a large income, he or she can spend more and still have enough money left over to save significant amounts of money. In such an example, it certainly would not be the case that spending causes an increase in saving; it would be the case that the person has enough money to ...
The expert provides explanations for each correlations.