By William S. Peters
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Sample text
An extreme case of what can happen is called Simpson's paradox, apparently after E. H. Simpson, who called attention to the possibility in a 1951 article. [5] The paradox is illustrated here by a real example from income taxes. [6] From 1974 to 1978 the effective income tax rates in each of five broad income tax brackets went down, but yet the overall effective income tax rate increased. The effective income tax in an income bracket is the total income tax divided by the total income earned by recipients in the bracket.
Fitzpatrick, "Leading British Statisticians of the Nineteenth Century," Journal of the American Statistical Association, 55, No. 289 (March 1960), 55. 4. 459. 5. E. H. Simpson, "The Interpretation ofInteraction in Contingency Tables," Journal of the Royal Statistical Society, Ser. B, 13 (1951),238-241. 6. Clifford R. 1 (February 1982),48. " [1] Rickey criticized some traditional baseball statistics and proposed some of his own, which included formulas for team offense and pitching efficiency. For individual hitting Rickey recommended the sum of on-base average (OBA) plus extra base power (EBP).
Laspeyres proposed the use of fixed base year quantity weights. This remains the most popular index number method today. In 1874 Hermann Paasche (1851-1925) proposed the use of current year quantity weights in aggregative price indexes. The index formulas recommended by Laspeyers and Paasche are still often referred to as the Laspeyres and the Paasche indexes. 5 oz) Gold Metal flour (5 lb) American Beauty wide egg noodles (12 oz) Minute rice (14 oz) Relative importance Table 3-2. Prices of Food at Home, 1977-1984.