Explain the pitfalls in the following statements. a. People who play golf are more likely to own
Question:
Explain the pitfalls in the following statements.
a. People who play golf are more likely to own a luxury car than people who do not play golf. Therefore, owning a luxury car causes people to play golf.
b. Oscar Johansson noted that when he buys new shares of a company’s stock listed on Nasdaq Stockholm, the stock price usually increases if he takes a shower after making his decision. Last night, Oscar bought some shares of a company and went home to take a shower and, as he had expected, the stock price increased. Obviously, the stock price increased because Oscar took a shower.
c. Cindy’s mother found that sending her to tutorial classes for math resulted in a 20 percent improvement in her scores. Based on this success, her mother decided to spend money to send Cindy to tutorial classes for all subjects so that Cindy’s academic performance would improve in all.
Step by Step Answer:
Principles Of Macroeconomics
ISBN: 9781292303826
13th Global Edition
Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster