theory

Answer below in 150 words

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  1. Two different people set out to develop a hypothesis to analyze a research problem.  They both want to determine why gas prices seem to rise late in the week.  One person has observed that gas prices tend to track changes in milk prices, and so establishes a hypothesis of changes in gasoline prices tied to changes in milk prices.  The other develops a hypothesis linking changes in gas prices to changes in the international spot price for oil. 

Explain why having a theory that states why variables behave the way they do is vital to performing correct statistical analyses.  Also, comment on how a faulty understanding of the theory of why variables relate to each other impacts why one might use the correct statistical procedure, but the analysis is still invalid.

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