This topic contains a solution. Click here to go to the answer

Author Question: What is spurious correlation? Provide a real or hypothetical example where two variables might ... (Read 82 times)

kfurse

  • Hero Member
  • *****
  • Posts: 590
What is spurious correlation? Provide a real or hypothetical example where two variables might exhibit such a relationship.

Question 2

What is residual analysis, and what information can it provide?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jasonq

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

Spurious correlation occurs whenever two variables are highly correlated but there is little evidence to suggest any causation. For instance, the closing of the Dow Jones Industrial Average (DJIA) could be highly correlated with the winner of the Super Bowl. (When the NFC wins it has historically tended to close higher for the year, and when the AFC wins it has tended to close lower for the year). However, there is no evidence to suggest that the Super Bowl winning conference causes the DJIA to move up or down. Likewise, there is no evidence to suggest that the movement in the DJIA causes one conference or the other to win the Super Bowl.

Answer to Question 2

Residual analysis refers to a broad class of tests which can be performed using the error terms from a regression line to test the assumptions of regression analysis. Residual analysis can test the assumption of normal distribution of the error terms, the assumption of equal standard deviations of the error terms, and the assumption that the error terms are independent from one another. In residual analysis, we may also flag error values that are especially large.




kfurse

  • Member
  • Posts: 590
Reply 2 on: Jun 24, 2018
:D TYSM


lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Excellent

 

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

For a complete list of videos, visit our video library