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Politics : President Barack Obama
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To: RetiredNow who wrote (143966)6/29/2014 5:47:51 AM
From: DuckTapeSunroof  Read Replies (1) of 149317
 
Re: "The economy has almost never not been in a recession with a GDP reading of -2.9%."

...Let's just take one example of how foolish it is to reach a definitive conclusion based on a single data input. Look at the chart below: It shows a powerful relationship between per-capita consumption of sour cream with U.S. motorcycle riders killed in noncollision transport accidents. Correlation: 0.916391.


Source: Tyler Vigen

Given that Wall Street’s computing horsepower rivals that of NASA, if that single variable existed, we have to believe it would have already been found, and whatever informational advantages it offered would have been whittled away already. For some fun with ridiculous correlations, have a look at Tyler Vigen’s website.

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Excerpted from:

When Correlations Lie

13 Jun 27, 2014 9:10 AM EDT
By Barry Ritholtz
bloombergview.com
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