Exercise

Regression Models and Policy Implementation

Suppose you see a Facebook post with a regression plot of the Number of Walmarts per Capita on Income per Capita, and the slope is positive. If you were asked to advise a town on a policy to attract a Walmart to town, would you say they should give tax refunds to their citizens to increase their income?

Instructions

50 XP

Possible Answers

Yes, the regression shows that Walmarts come to richer places
No, you can't learn the cause of Walmart locations from the regression