Examining facts-reversed causality

Reference no: EM1366636

A hypothetical study examines the operations of a couple of hundreds medical clinics, with the data for the amount of expenses for new medical equipment relative to the total expenses in a particular year(s), and the amount of revenue per physician in subsequent years. The study finds that the more a clinic spends for new equipment, the more revenue the clinic generates in subsequent years. Based on the finding, the principal analyst of the study concludes that a purchase of new medical equipment causes an increase in a clinic's revenue. Someone else who is not involved in the study, however, argues that the conclusion has a problem of 'reversed causality.' Provide a possible reason why the study's conclusion could have a problem of 'reversed causality.'

Reference no: EM1366636

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