Reference no: EM131173652

One main goal of statistics is to use non-complete information to draw a conclusion. Often (especially in economics) the conclusion from statistical analysis can trigger some specific policy response. In your response to this thread, think about an example in every day life when you use--or someone you observe uses--imperfect information/evidence to draw a conclusion and then act accordingly. Structure your example as follows (Question, Evidence, Response, Possible Mistakes): Like the below example...

Question: Will it rain later today?

Evidence: Look outside the window, listen to radio/tv weather reports.

Response: If I conclude it will rain, I will take an umbrella to work. If I conclude it won't rain, I will not take an umbrella.

Possible Mistakes: If I take an umbrella and it does not rain, my purse will be unnecessarily heavy. If I do not take an umbrella and it does rain, then I will get soaked.