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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Department of awful statistics

By Megan McArdle
Apr 2 2009, 9:10 AM ET Comment

Every time you find yourself saying that there must be some causal relationship between two strongly correlated variables, you should go back and look at this graph:

Lemongraph.jpg




As Atlantic Business contributor Derek Lowe, from whom I stole that graph, notes,

I've seen a lot shakier plots used to justify some sweeping conclusions, and if those were justified, well, then I'm forced to conclude that Mexican lemons have improved highway safety a great deal. The vitamin C, maybe? The fragrance? Bioflavanoids?

This is particularly tricky when you bring time into it, because things trend--as we get richer, we buy safer cars, get better emergency rooms, etc.  We also import more lemons to make our chi-chi cocktails and lemon meringue pies.  Overlay the two, and you've got a hell of a causal relationship.

But I expect that four years from now, we'll still be having the same conversations with proponents of "cancer clusters" and Democrats convinced that they can scientifically prove that Democrats are better for GDP by doing ham-fisted regressions of Democratic presidencies with a few tightly correlated economic variables.  What's the mechanism?  What makes electric power lines cause cancer, but not the earth's vastly more powerful magnetic field?  What policies did Harry Truman and Bill Clinton have in common (but not with Richard Nixon) that caused this marvelous confluence?  Well, maybe we don't know the mechanism exactly, but never you mind:  just look at that bee-yoo-ti-ful correlation!


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