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.

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

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