Question

In: Advanced Math

1 Over the past decade, there has been a strong positive correlation between teacher salaries and...

1 Over the past decade, there has been a strong positive correlation between teacher salaries and prescription drug cost.

(a) Do you think paying teachers more causes prescription drugs to cost more? Explain.
(b) What lurking variable might be causing the increase in one or both of the variables? Explain.

2 When we use a least-squares line to predict y values for x values beyond the range of x values found in the data, are we extrapolating or interpolating? Are there any concerns about such predictions?

WRITE IN YOUR OWN! WORDS and dont copy from another question that have been answer plz thank you

Solutions

Expert Solution

(a)

No, paying teachers more does not cause prescription drugs to cost more.

Explanation: Correlation does not imply causation. Just because there is a strong positive correlation between teacher salaries and prescription drugs cost, t does imply that paying teachers more cause prescription drugs to cost more.

(b) The lurking variable which might be causing the increase in both the variables is the rising cost of living.

Explanation: Since the cost of living is going up, the teachers are paid more salary so that they can meet the additional expenditure. Since the cost of living is going up, companies have increased prescription drugs to maintain their profit because of increase in production cost of the medicines.

2.

Answer : Extrapolation.

Concerns of extrapolation:

Extrapolation using linear model assumes the same conditions as in the existing values with which the least square line was fit will hold for the future values also. This assumption though valid for some cases cannot hold in general. For example failure rate is constant during the useful life of a product, but when the product enters the wear out phase, failure rate increases with time. So, the linear model which was sufficient in useful life time becomes inapplicable in wear out phase and hence extrapolation is invalid.

Colby Messinger answered 2 years ago
Next > < Previous

Related Solutions

The rate of entrepreneurship has been growing steadily in the United States over the past decade....
The rate of entrepreneurship has been growing steadily in the United States over the past decade. The reasons behind this increase are varied. Most of the people starting a business seek a combination of greater financial success, independence, flexibility, and challenge. Owning a business holds appealing benefits for entrepreneurs like being their own boss, having control over their schedule, and facing new challenges. Almost every entrepreneur starts out as a small businessperson but not every small businessperson starts out as...
(a) Over the past decade, some of Japanese savings has been used to purchase large amounts...
(a) Over the past decade, some of Japanese savings has been used to purchase large amounts of U.S. financial assets (typically U.S. government bonds). Suppose Japan suddenly stopped purchasing U.S. financial assets. Graphically illustrate the effect of Japan’s reduction in purchases of U.S. financial assets using the Open Economy model developed in the Ch 6 appendix. (Hint: In your model you will need to draw three diagrams). Clearly label the axes and curves in each of your graphs in the...
Healthcare Policy in the United States has been largely consumed over almost the past decade by...
Healthcare Policy in the United States has been largely consumed over almost the past decade by Affordable Care Act. Why does universal access to healthcare continue to be debated in the United States, and in what ways is this discussion different from the healthcare discussion in other countries?
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products...
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products continues to rise, so management has decided to expand the production facility; $2 800 000 has been set aside for this over the next four years. Management has developed two different plans for expanding over the next four years: Plan A and Plan B. Plan A would require equal amounts of $750 000, one year from now, two years from now, three years from...
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products...
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products continues to rise, so management has decided to expand the production facility; $2 800 000 has been set aside for this over the next four years. Management has developed two different plans for expanding over the next four years: Plan A and Plan B. Plan A would require equal amounts of $750 000, one year from now, two years from now, three years from...
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products...
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products continues to rise, so management has decided to expand the production facility; $2 800 000 has been set aside for this over the next four years. Management has developed two different plans for expanding over the next four years: Plan A and Plan B. Plan A would require equal amounts of $750 000, one year from now, two years from now, three years from...
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products...
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products continues to rise, so management has decided to expand the production facility; $2 800 000 has been set aside for this over the next four years.Management has developed two different plans for expanding over the next four years: Plan A and Plan B. Plan A would require equal amounts of $750 000, one year from now,two years from now, three years from now, and...
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products...
Precision Machining Corporation has been growing steadily over the past decade. Demand for the company’s products continues to rise, so management has decided to expand the production facility; $2 800 000 has been set aside for this over the next four years. Management has developed two different plans for expanding over the next four years: Plan A and Plan B. Plan A would require equal amounts of $750 000, one year from now, two years from now, three years from...
Over the past decade, the federal government has taken significant steps to encourage the development of...
Over the past decade, the federal government has taken significant steps to encourage the development of ethanol and other fuels made from plants as a partial replacement for gasoline. These actions have been undertaken by politicians in the midst of public concerns about the dependence on foreign oil, war in the Middle East, and global warming. The primary input for ethanol production is corn. In 2011, the 13.9 billion gallons of ethanol produced in the United States consumed over 20...
The healthcare industry is ever changing, but over the past decade, it has changed even more...
The healthcare industry is ever changing, but over the past decade, it has changed even more rapidly than we could have ever imagined, especially over the last few months.   Based on this, fill in the blanks in the grid, and summarize a minimum of two changes per category, discussing what changes have taken and may take place in the world and health care for the defined timeline. What changes have taken place (2015 through today) Speculate on possible future changes...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT