Jul 13th 2013
Spurious correlations are also rife in the online world, as a 2011
paper* by Randall Lewis, Justin Rao and David Reiley, a trio of
economists then working for Yahoo, shows. Individuals use the web in a
lumpy way. On some days lots of sites are visited and many purchases
made; on others usage is lighter. This makes comparisons across time
unhelpful. On a high-activity day people will tend to perform a lot of
searches (and see lots of ads) as well as make many purchases. The
relationship between the ads and the purchases looks causal, but may not
be.
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