Years ago i saw an interesting set of data the data

Reference no: EM13600625

Years ago I saw an 'interesting' set of data. The data presented an analysis of stock market (NYSE) performance versus an unnamed variable, x. The data showed an extremely high statistical correlation between NYSE performance and x. It showed that a barrage of statistical tests indicated (presumably) that x 'caused' NYSE. The article concluded with the revelation that x was, in fact, the batting average of the 1912 New York Yankees over some time period.

How can this be? What does that mean? I'm sure you've noticed that the authors are very careful in the way they phrase the results of statistical analysis.....e.g. when you reject an hypothesis you don't conclude that something caused something else. You conclude that "there is or is not enough statistical evidence to reject or accept Ho".

Reference no: EM13600625

Questions Cloud

Net cash flow is the difference between a firms operating : net cash flow is the difference between a firms operating cash flow and its financing cash flow. is the difference

Why is it important for companies to disclose the : why is it important for companies to disclose the different types of intangibles that they own? how much disclosure is

Logan products computes its predetermined overhead rate : logan products computes its predetermined overhead rate annually on the basis of direct labor hours. at the beginning

Gq company produces its product in a single processing : gq company produces its product in a single processing department. direct materials are added at the start of the

Years ago i saw an interesting set of data the data : years ago i saw an interesting set of data. the data presented an analysis of stock market nyse performance versus an

The total factory overhead for ospina company is budgeted : the total factory overhead for ospina company is budgeted for the year at 1704000 and divided into two departments

Using a the regression equation and b the high-low equation : high-low method regression analysis. cima adapted anna martinez the financial manager at the casa real restaurant is

Centex inc issued 41000 shares of its 1 par value common : centex inc. issued 41000 shares of its 1 par value common stock for 30 per share. the journal entry to record the stock

Calculate the ending balances in work in process finished : proration overhead. the-ride-on-wave company row produces a line of non-motorized boats. row uses a normal costing

User Account

All Pages