Regression and correlation-abused tools in research

Reference no: EM1398171

Regression and Correlation are two of the most often used and abused tools in research. People are quick to jump to conclusions that if a relationship exists between two variables, then one must cause (causation) the other. There are many reasons why two variables can be related without causality. Please respond to the following:

a. Comparing the amount of money people spend and the amount people save, your analysis revealed an R-squared=0.97. Should you use this for predictive purposes and why?

b. Comparing the number of cops on our streets and the number of reported crimes, your analysis revealed an R-squared=0.40. Should you use this for predictive purposes and why?

c. How could this apply in your profession?

Reference no: EM1398171

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