Consider two models that you are to fit to a single data set involving three variables:...

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Basic Math

Consider two models that you are to fit to a single data setinvolving three variables: A, B, and C.
Model 1 : A ~B
Model 2 : A ~B + C
(a) When should you say that Simpsonâ€™s Paradox is occuring?
A. When Model 2 has a lower R2 than Model 1.
B. When Model 1 has a lower R2 than Model 2.
C. When the coef. on B in Model 2 has the opposite sign to thecoef. on B in Model 1.
D. When the coef. on C in Model 2 has the opposite sign to thecoef. on B in Model 1.
(b) True or False: If B is uncorrelated with A, then thecoefficient on B in the model A ~ B must be zero.
(c) True or False: If B is uncorrelated with A, then thecoefficient on B in a model A ~ B+C must be zero.
(d) True or False: Simpsonâ€™s Paradox can occur if B isuncorrelated with C.

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4.5 Ratings (781 Votes)

C When the coef on B in Model 2 has the opposite sign to thecoef on B in Model 1simpson paradox is said to occur when the correlation betweenexplanatory and response variable is reversed iethe sign of theregression slopes will be See Answer

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