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Question 3. Data showed that ice cream sales was linked to number of deaths due to drowning - when ice cream sales went up,
Question 3. Data showed that ice cream sales was linked to number of deaths due to drowning - when ice cream sales went up, the number of drowning deaths also rose. Explain why this could occur. Does this mean that ice cream sales cause drownings? Explain why or why not. 10 points. Question 4. Suppose we observe that the average self-reported health is 3.5 for those with health insurance and 4.0 for those without health insurance (the higher the number, the healthier an individual reports feeling). Also assume individuals buy health insurance based on their medical needs and potential medical expenses, to be specific, the higher the needs, the more likely an individual is to buy health insurance. Since health seems poorer for those with health insurance than those without, Amy, a research analyst, concludes that health insurance decreases health. Explain to Amy why her conclusion might be wrong based solely on the information presented in this question. 10 points.
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