Question
The Water And Waves Association (WAWA) has just released a study where they claim that attending water parks causes people to be happier. WAWA is
The Water And Waves Association (WAWA) has just released a study where they claim that attending water parks causes people to be happier. WAWA is lobbying the government to make tickets to water parks tax free. The governor has asked you to review the study. You discover that the study does not control for any other variables. You know that income is highly correlated with happiness and are worried that it might be important confounder (omitted variable).
A)(2 point) What additional information do you need to know before you can be sure there is a problem?
B)(2 point) Is there something you could discover that would make your results better for WAWA's case for tax free tickets? That is something that would make the effect of water parks on happiness even better.
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