week4_discussion2.rtf

Prior to beginning work on this discussion forum, read Chapter 11: Regression Analysis: Statistical Inference, paying attention to Section 11-7 on outliers and Figures 11.13, 11.14, and 11.15. Additionally, read Chapter 12: Time Series Analysis and Forecasting.

Prior to beginning work on this discussion forum, read Chapter 10: Regression Analysis: Estimating Relationships.

Consider the relationship between yearly wine consumption (liters of alcohol from drinking wine, per person) and yearly deaths from heart disease (deaths per 100,000 people) in 19 developed countries. Suppose that you read a newspaper article in which the reporter states the following:

Researchers find that correlation between yearly wine consumption and yearly deaths from heart disease is 0.84. Thus, it is reasonable to conclude that increased consumption of alcohol from wine causes fewer deaths from heart disease in industrialized societies.

In your initial post, evaluate and comment on the reporter’s interpretation of the correlation in this situation.