The Simpson's paradox, famously known as the Yule-Simpson effect is a compelling demonstration of how Statistics, the bedrock of some of the most vital decisions in any organisation, can be deceptive. Named after the celebrated statistician Edward H. Simpson, this anomaly isn't just a theoretical curiosity but constantly pops up in the real world in areas as diverse as sports and medical studies.
The paradox essentially occurs when the statistical trends depicted by a certain set of data, grouped into arbitrary categories reverses or disappears when these categories are combined. This is because lurking within this organised data are certain unobserved variables, which cause us to re- examine our initial conclusions.
Fascinating, isn't it?
What if I tell you about a study in UK evidencing a higher survival rate in smokers than non smokers? Don't think it's possible? Think again!
Is your intuition duping you or are you falling prey to the Simpson's paradox?
Watch the video and decide for yourself!
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