Correlation

The coefficient of determination, r2, indicates the statistical relationship between two variables. Frequently, if there is a high correlation between two variables, we can safely assume that one causes the other. But this is not always the case—sometimes the correlation is spurious, meaning invalid and misleading. Researchers found that from 1931 to 1971 there was a very high correlation between the length of women’s skirts and stock market prices. In a 1 page paper, comment on whether this correlation reveals causality or whether it is spurious.

 

 

 

Sample Solution

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