Purchase Solution

Relationship Between the Amount of Money People Spend and Save

Not what you're looking for?

Ask Custom Question

Give a plausible explanation for 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.

Purchase this Solution

Solution Summary

The ideas of causation and correlation is compared using an example about the amount of money people spend and save.

Solution Preview

We need to be careful in distinguishing between correlation and causation. The fact is those that spend more also save more. The ...

Solution provided by:
Education
  • MBA, Merage School of Business, Univ of Cal, Irvine
  • BA, Univ of Cal, Irvine
Recent Feedback
  • "Thank you so much for your help, it was very helpful to see how you did it in excel. Thanks again!"
  • "Awesome review. Thank you!!!!!"
  • "Wow - Amazing - Thanks"
  • "Thanks"
  • "Thanks for your help. Your solution helps me understand the problem and its solution."
Purchase this Solution


Free BrainMass Quizzes
Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.