Statistics: Concepts and Controversies
Statistics: Concepts and Controversies
9th Edition
ISBN: 9781464192937
Author: David S. Moore, William I. Notz
Publisher: W. H. Freeman
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Chapter 15, Problem 1CS
To determine

Whether the stocks would go down in the year 2016.

Expert Solution & Answer
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Answer to Problem 1CS

Solution: The stocks may or may not be go down in 2016.

Explanation of Solution

According to the “Super Bowl Indicator,” the stocks go up in the year if a team from NFC wins the game and go down if a team from AFC wins. In 2016, a team from AFC wins the game and the stocks go down according to the “Super Bowl Indicator.” The indicator is not correct every time.

There is a possibility of direct causation and presence of confounding and lurking variables that affect the change in stocks and the result of the indicator vary. So, it cannot be concluded that the stocks would go down in 2016.

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