Thursday, January 29, 2009

The Steelers, the Stock Market, and Spurious Correlation

The USA Today reports today that the stock market has performed quite well during years in which the Pittsburgh Steelers have won the Super Bowl. In fact, the stock market has clearly done better when the Steelers emerge victorious than when other teams win the Super Bowl. Of course, it doesn't mean we should all run off and root for the Steelers in hopes that it will restore our 401K plan balances. This is a classic example of spurious correlation... and a good example for reminding students about not being fooled into thinking such correlations imply causation.

1 comment:

Nirman broking said...

Thanks so much for this! I haven't been this moved by a blog for a long time! You’ve got it, whatever that means in blogging. Anyway, You are definitely someone that has something to say that people need to hear. Keep up the good work. Keep on inspiring the people!
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