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<p>[QUOTE="medoraman, post: 1265980, member: 26302"]Let me ask a "silly" question. What do the two things have in common? WHY should there be any relationship?</p><p><br /></p><p>This is a distinct danger. I once too the price of avacados and compared it versus the S&P and "predicted" a relationship of stock prices versus avacados. I did this to show my students any two things can be compared, and from that comparison mathematically "predict" a relationship and predict the future. Does avacados predict the S&P?</p><p><br /></p><p>My point is NO chart, NO relationship is meaningful unless you also prove out WHY there is a relationship between the two. If there is a relationship, is is mutual or does one drive the other? If so which one?</p><p><br /></p><p>Just saying these are the critical decisions which needs to be asked before blindly accepting a comparison. Are these charts truthful? Yes, but so was my "Avacado Index". It was truthful but valueless, as it intentionally was meant to be.</p><p><br /></p><p>Edit: Btw Inflexion I am not saying this to poke fun, I am asking this so you can think about the answer so yourself will have better understanding. Maybe you believe there is a direct correlation, and if so please let us know. Again, its healthy for others to challenge our assumptions so we ourselves better understand our beliefs. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1265980, member: 26302"]Let me ask a "silly" question. What do the two things have in common? WHY should there be any relationship? This is a distinct danger. I once too the price of avacados and compared it versus the S&P and "predicted" a relationship of stock prices versus avacados. I did this to show my students any two things can be compared, and from that comparison mathematically "predict" a relationship and predict the future. Does avacados predict the S&P? My point is NO chart, NO relationship is meaningful unless you also prove out WHY there is a relationship between the two. If there is a relationship, is is mutual or does one drive the other? If so which one? Just saying these are the critical decisions which needs to be asked before blindly accepting a comparison. Are these charts truthful? Yes, but so was my "Avacado Index". It was truthful but valueless, as it intentionally was meant to be. Edit: Btw Inflexion I am not saying this to poke fun, I am asking this so you can think about the answer so yourself will have better understanding. Maybe you believe there is a direct correlation, and if so please let us know. Again, its healthy for others to challenge our assumptions so we ourselves better understand our beliefs. :)[/QUOTE]
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