Chapter 7 Rethink Regressions and Resist Correlations

Bill Gates and his team at Microsoft are to blame for some very bad statistical analysis. Their Excel program has made regression and correlation analysis way too easy to do and too many people use it without any understanding of the process or logic in designing the analysis. Despite this creation of a potential monster from Microsoft, regression and correlation are two very helpful analytical tools. However, they do not provide all the answers in any situation and need to be used with careful thought about the data being input, the structure of the analysis, logic, and a healthy dose of cynicism about any analytical conclusions. Both regression and correlation analysis are based on historical ...

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