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Indirect Relationships

Now that warm weather is finally upon us (or at least in some parts of the country), is there a possible relationship between crime rates and ice cream sales?

In the world of regression analysis, this is called an indirect relationship. As there is no direct correlation between the 2 variables. However, what if you identified an underlying variable which they both have in common? Say weather? That is right, as crime rates increase, so does Ice Cream sales.....the reason.....the weather. Because as the temperature outside gets warmer which leads to the increase of 2 variables (more crimes are committed in the Summer).

Shark Attacks and Retail Sales! As Retail Sales increase so does Shark Attacks!

What is the underlying variable that indirectly correlates these 2 variables?

What other variables could you identify as having an indirect relationship?

Solution Preview

The underlying variable could be holiday season. If it is the holidays, then more people are likely to go to the beach (such as memorial day, ...

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