A study fines that during blizzards, online sales are highly associated with the number of snow...

A study fines that during blizzards, online sales are highly associated with the number of snow plows on the road; the more plows, the more online purchases. The director of an association of online merchants suggests that the organization should encourage municipalities to send out more plows whenever it snows because, he says, it will increase business. Do you agree with his conclusion? Why or why not? Use statistical terms in your answer.

Solutions

Expert Solution

It would be dangerous to come to hasty conclusions looking at two things moving in the same direction (or even in opposite direction.) It is a very common error in application of statistical tools - what is known in the statistical parlance as 'spurous correlation'. Two variables may keep rising over a period, possibly due to an influencing factor which has a positive impact on both variables, but the two impacted variables have no technical relation. In such a scenario, the two impacted variables would exhbit a positive ternd,

Thus, a relation found to be empirically true, should be first established to be technically related or a possible meaningful justification must be evolved before coming to the conclusion that one variable influences the other. DONE

orchestra answered 2 years ago

Next > < Previous

Related Solutions

what are is the monetary fines, and legal fees associated with data breach in the state...

what are is the monetary fines, and legal fees associated with data breach in the state of Washington?

You work for a snow cone company. You've collected data on monthly sales (S, number of...

You work for a snow cone company. You've collected data on monthly sales (S, number of snow-cones per month) and the price of your regular-size snow-cone (P, in dollars), as well as the daily average summer temperature in your most popular market (T, in degrees Fahrenheit). You estimate the following regression model: S = a + bP + cT. In your regressions, you usually look for a 10%-or-better level of confidence. a) What are the expected signs for a, b, and...

Consider the following data of the number of hours 12 students spent online during the weekend...

Consider the following data of the number of hours 12 students spent online during the weekend and the scores of each student who took a test the followingMonday. Hrs spent online(x): 0 1,2,3,3,5,5,5,6,7,7,10. Test scores(y): 96,85,82,74,95,68,76,84,58,65,75,50.a. Find the sample linear correlation coefficient and interpret it. b. Is the population correlation coefficient significant? [ use ? = 0.05]. c. Find the equation of the regression line. What is the slope of the line? Interpret this value in the context? d. What...

6. Consider the following data of the number of hours 12 students spent online during the...

6. Consider the following data of the number of hours 12 students spent online during the weekend and the scores of each student who took a test the followingMonday. Hrs spent online(x) 0 1 2 3 3 5 5 5 6 7 7 10 Test scores(y) 96 85 82 74 95 68 76 84 58 65 75 50 a. Find the sample linear correlation coefficient and interpret it. b. Is the population correlation coefficient significant? [ use α= 0.05] c....

1. The chart below records number of hours 12 students spent online during the weekend and...

1. The chart below records number of hours 12 students spent online during the weekend and the Math test scores they achieved the following Monday. Hours on‐line (x) 0 7 5 2 3 5 1 3 5 10 7 6 Test scores (y) 96 75 84 82 74 76 85 95 68 50 65 58 a) Find the value of “r”, the linear regression constant b) Find the equation of the regression line c) Using the regression line, predict, if...

Suppose the number of equipment sales and service contracts that a store sold during the last...

Suppose the number of equipment sales and service contracts that a store sold during the last six (6) months for treadmills and exercise bikes was as follows: Treadmill Exercise Bike Total sold 185 123 Service contracts 67 55 The store can only sell a service contract on a new piece of equipment. Of the 185 treadmills sold, 67 included a service contract and 118 did not. Complete the following questions in...

What accounts for the different in online penetration between books (about 50% of sales are online),...

What accounts for the different in online penetration between books (about 50% of sales are online), apparel (about 25% of sales are online) and groceries (about 1% of sales are online) in the US? What is the value network, and distinctive capabilities underlying each of the two business models (Amazon online versus Walmart Supercenters)?

ROI and Residual Income:Basic Computations Watkins Associated Industries is a highly diversified company with three divisions:...

ROI and Residual Income:Basic Computations Watkins Associated Industries is a highly diversified company with three divisions: Trucking, Seafood, and Construction. Assume that the company uses return on investment and residual income as two of the evaluation tools for division managers. The company has a minimum desired rate of return on investment of 10 percent with a 30 percent tax rate. Selected operating data for three divisions of the company follow. Trucking Division Seafood Division Construction Division Sales $1,200,000 $780,000 $900,000...

Describe the contribution of John Snow to epidemiology. What type of study did he conduct? Was...

Describe the contribution of John Snow to epidemiology. What type of study did he conduct? Was it analytical or descriptive epidemiology (or both)? Be specific with examples from his study

The Indian FMCG Market is a highly competitive market with a large number of national and...

The Indian FMCG Market is a highly competitive market with a large number of national and global players competing on margins. The stock turnover is high as FMCG products are frequently consumed and have a short shelf life. The presence of large number of sellers is highlighted by the fact that the Indian Soap and Detergent market has 700 companies competing to sell their products. The major players across the country are ITC Limited, Procter & Gamble and Hindustan Unilever...

Subjects