Asked by Anita Kuchlewski on May 31, 2024
Verified
Robert recently purchased a Volkswagen Beetle, and was told by his insurance company he would have to pay higher premiums because it was red in colour. When asked to explain, the insurance agent said the company had accident history data that demonstrated red cars were involved in three times as many accidents. Robert analyzed the data and found that the red cars were predominantly high-speed sports cars. When he pointed this out, the insurance company readdressed its pricing policy. What did Robert discover?
A) a causal relationship
B) a spurious relationship
C) an a priori relationship
D) a curvilinear relationship
Spurious Relationship
A false or misleading correlation between two variables that is not due to any direct relationship but might be due to a third variable or coincidence.
Causal Relationship
A connection between two variables where a change in one directly causes a change in the other.
Insurance Company
A financial institution that provides coverage by assuming the risks of its clients in exchange for premiums, offering protection against potential future losses.
- Comprehend the nature of unscientific thinking and its effects on logical processes.
Verified Answer
Learning Objectives
- Comprehend the nature of unscientific thinking and its effects on logical processes.
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