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Sample Essay
Sample MCQ
How They Lie: Simpson’s Paradox
You are presented with the following statement:
University X accepts:
– 75% of all women who apply
– 69% of all men who apply
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Based on the following statement, is it fair to say that University X is not biased against women? Do you think the answer is obvious? (it isn’t)
Allow me to introduce you to an elegant statistical paradox!
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Graphs: deciphering Marginals & Averages
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Have you ever looked at a graph of total output and wondered to yourself:
“Gee, I wonder which level of output would give me the highest average output?”
Or perhaps you looked at a graph of total profit and asked yourself:
“Hmmmm, which unit of output gives me the highest profit from that unit (marginal profit)?”
If you have tried and run into a wall, then fear not!
These questions can be answered with some simple graphical analysis that is firmly rooted in mathematics.
Starbucks vs Pret-A-Manger: a Hotelling Game
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Why do Starbucks and Pret-A-Manger (or Coffee Bean) often have their shops next to each other? Or the same phenomenon with McDonald’s and KFC? Why do you see competing banks clustered along the same road? Surely, you think it would make more sense for two similiar and competing firms to locate themselves as far away from each other as possible. Yet, all these firms with a clear profit motive often behave in a manner that contradicts seemingly intuitive logic.
We need to figure this out. So let’s play a game.