Saturday, July 14, 2007

Wall St. Analysis of Desperation

This topic has been a pretty big hit on the internets today. Which plot do you think the Wall St. journal chose to publish?

Here is the line that any student of statistics would draw. This shows that the more you raise taxes, the more revenue you collect.

But if you are the Wall St. Journal and you want to make a point...this is how you draw the line. This is the supply-side economic view of the data.

Here is the Wall St. Journals analysis.

Many is the time that I wanted to draw a line through an "outlier" (Norway) in my research data but I was taught that one does not do that.

Comments by Cosmic Variance here.

Comments by Kevin Drum here.

Economist's view here.

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