"For example, a correlation may exist between changes in temperature in an obscure Australian town and price changes in the U.S. stock market. A person would know that the two events have no connection."
"For example, a correlation may exist between changes in temperature in an obscure Australian town and price changes in the U.S. stock market. A person would know that the two events have no connection."
1. El Nino / Southern Oscillation affects the temperature in Australia and (especially South) America which would affect farm yields and hence US stock market prices.
2. Extra hot temperatures at a uranium mine near a town in Australia might limit productivity of that mine, causing uranium prices to change.
Just two off the top of my head. The effects might be only very mildly correlated, but not zero.
> A person would know that the two events have no connection.
When a negative statement like this is presented as absolute and categorical it's very easy to disagree with it.