Question

Why does it matter to know how a demand curve was generated?


We may give a different recommendation for different models


It helps find errors in the data


Knowing the truth always helps


Correlation does not imply causation

Answer 1

Answer:

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Explanation:

Correlation is not causation. Correlation is not causation. Correlation is not causation … " At times during my statistics studies I felt like Jack Nicholson in the film The Shining, in which we witness his descent into madness as he types the same sentence over and over again, "All work and no play makes Jack a dull boy. All work and no play makes Jack a dull boy … "

"Correlation is not causation" is a statistics mantra. It is drilled, military school-style, into every budding statistician. But what does it actually mean? Well, correlation is a measure of how closely related two things are. Think of it as a number describing the relative change in one thing when there is a change in the other, with 1 being a strong positive relationship between two sets of numbers, –1 being a strong negative relationship and 0 being no relationship whatsoever.

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